FOREX-Dollar hovers near 11-week low on Fed rate cut bets

* Graphic: World FX rates in 2019

* Fed rate cut views continue to weigh on dollar

* Euro steady, take Trump's comments on the currency instride (Adds details and quotes, updates prices)

By Shinichi Saoshiro

TOKYO, June 12 (Reuters) - The dollar hovered near an11-week low against its peers on Wednesday, weighed byexpectations the U.S. Federal Reserve could cut interest ratessome time in the next few months.

The dollar index .DXY versus a basket of six majorcurrencies was effectively flat at 96.707, trading just abovethe 96.459 level it hit on Monday, its lowest since late March.

The index has been under pressure following a sharp declinein long-term U.S. Treasury yields, which fell to near two-yearlows on Friday after a soft U.S. jobs report raised expectationsfor an interest rate cut by the Fed.

Investor focus is now on the Fed's next policy meeting onJune 18-19 and what kind of signals the central bank could offeron the direction of monetary policy.

"The market has priced in a rate cut by the Fed to asignificant degree," said Shinichiro Kadota, senior strategistat Barclays in Tokyo.

"So the market is waiting for next week's Fed meeting as achance to see by how much and for how long it is ready to easepolicy."

Expectations for a central bank rate cut this year rose lastweek after a number of Fed officials, including Chairman JeromePowell, hinted they were open to easing monetary policy.

According to the CME Group's FedWatch Tool, interest ratefutures traders are pricing in a 17% chance of easing at theFed's meeting next week and an 80% chance at the followingmeeting in July.

The euro EUR= was steady at $1.1330 and in close reach ofa three-month peak of $1.1348 scaled on Friday.

The single currency was little affected by U.S. PresidentDonald Trump's accusation that Europe was devaluing the euro,which has gained roughly 1.4% against the dollar so far in June.

Trump tweeted on Tuesday that the euro and other currenciesare devalued against the dollar and put the United States at abig disadvantage.*:nL2N23I0D0

"For the first time in a while the U.S. president decided tocriticise the currency policies of other countries," said MakotoNoji, chief currency and foreign bond strategist at SMBC NikkoSecurities.

"But his criticism lacked the strength of his earlierstatements on currencies. When he took office, Trump hadstressed that a weaker dollar was necessary to create U.S.employment."

The dollar was little changed at 108.480 yenJPY= . Thegreenback has crawled off a five-month low of 107.810 plumbed aweek ago when risk aversion in the broader markets heighteneddemand for the safe-haven yen.

China's yuan CNH=D4 was steady in offshore trade at 6.9250per dollar after bouncing back the previous day from seven-monthlows.

The yuan had risen on Tuesday after China's central banksaid it would sell yuan-denominated bills in Hong Kong in lateJune, in a move that some market analysts believed was aimed atstemming a sharp decline in the yuan.*:nL4N23I0S9

An escalation in the U.S.-China trade conflict has weighedheavily on the yuan this year. (Editing by Sam Holmes and Jacqueline Wong) ((; Reuters

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