FOREX-Dollar stabilizes after exit of Trump's top economic adviser

* Top economic adviser's departure stokes trade war concerns

* Uncertainies whether Trump will impose steel, aluminum tariffs

* Upbeat U.S. labor cost, private jobs data offset Cohn exit

* Trade-weighted euro index touches highest since Sept 2014

(Updates market action, changes dateline, previous London) NEW YORK, March 7 (Reuters) - The dollar held steady on Wednesday, recouping earlier losses tied to the exit of a top economic adviser to U.S. President Donald Trump, which had raised concerns that tensions over a global trade war were entering a heightened phase. Doubts among traders persist over whether Trump's proposed tariffs on imported steel and aluminum will be enacted, even after the White House signaled they would go into effect following the resignation of Gary Cohn, the director of the National Economic Council. Traders also are looking to gauge the level of possible retaliation from the European Union, Canada, Mexico and other major U.S. trade partners if these stiff levies were to be implemented. "So far the reaction has been muted," Sireen Harajli, currency strategist at Mizuho in New York, said of the dollar. "(Cohn's) resignation has signaled higher risk of a trade war." Cohn's departure comes against the backdrop of steps by the Trump administration to assert protectionist policies, including withdrawing the United States from the Trans-Pacific Partnership, instigating a renegotiation of NAFTA and imposing hefty import tariffs on some targeted products. The dollar and global stock markets initially sagged on the Cohn departure. The greenback staged a steady recovery during U.S. trading, while Wall Street shares pared initial losses. At 11:44 a.m. (1644 GMT), the index that tracks the dollar versus six currencies rose 0.135 points or 0.15 percent, to 89.753, rebounding from an earlier low of 89.407. The dollar's bounce was further stoked by encouraging data on domestic private hiring and labor costs that reinforced the view of underlying strength in the U.S. economy. However, those figures were mitigated by a larger-than-forecast widening of the U.S. trade deficit in January. Nevertheless, anxiety about a deterioration in global trade limited the dollar rebound with some traders favoring the yen as a safe haven, analysts said. "We therefore see the latest news as an additional reason to remain cautious on the outlook for the broad dollar," Goldman Sachs economists Zach Pandl and Karen Reichgott wrote in a research note. The dollar was down 0.02 percent at 106.09 yen. It held just above a 14-month low of 105.23 yen set last week, Reuters data showed. The euro was last down 0.10 percent, at $1.2389. The trade-weighted euro index hit 100.2565, the highest level since September 2014.


Currency bid prices at 11:43AM (1643 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change


Euro/Dollar EUR= $1.2394 $1.2402 -0.06% +3.32% +1.2443 +1.2385 Dollar/Yen JPY= 106.1000 106.1100 -0.01% -5.83% +106.2100 +105.4700 Euro/Yen EURJPY= 131.52 131.63 -0.08% -2.71% +131.7400 +130.9500 Dollar/Swiss CHF= 0.9426 0.9405 +0.22% -3.25% +0.9439 +0.9358 Sterling/Dollar GBP= 1.3886 1.3885 +0.01% +2.77% +1.3912 +1.3847 Dollar/Canadian CAD= 1.2976 1.2875 +0.78% +3.17% +1.2988 +1.2875 Australian/Doll AUD= 0.7800 0.7827 -0.34% -0.01% +0.7829 +0.7772


Euro/Swiss EURCHF= 1.1685 1.1668 +0.15% -0.03% +1.1698 +1.1632 Euro/Sterling EURGBP= 0.8924 0.8932 -0.09% +0.46% +0.8967 +0.8919 NZ Dollar/Dolar NZD= 0.7264 0.7288 -0.33% +2.51% +0.7299 +0.7256 Dollar/Norway NOK= 7.8088 7.7755 +0.43% -4.85% +7.8227 +7.7625 Euro/Norway EURNOK= 9.6824 9.6451 +0.39% -1.69% +9.6959 +9.6439 Dollar/Sweden SEK= 8.2533 8.2057 +0.51% +0.63% +8.2557 +8.1964 Euro/Sweden EURSEK= 10.2304 10.1785 +0.51% +3.98% +10.2463 +10.1774

All spots FX= Tokyo spots AFX= Europe spots EFX= Volatilities FXVOL= Tokyo Forex market info from BOJ TKYFX World central bank news CEN

Economic Forecasts... ECON Official rates...INT/RATE Forex Diary.......MI/DIARY Top events........M/DIARY

Diaries...........DIARY Diaries Index........IND/DIARY Press Digests.....PRESS Polls on G7 economies..SURVEY/ European markets......MARKETS/))

(Additional reporting by Saikat Chatterjee in London Editing by Jon Boyle and Meredith Mazzilli)