Dollar stuck ahead of another rush of US data

TOKYO, Dec 22 (Reuters) The dollar idled on Friday as traders consolidated positions in thinning year-end trade and on caution before another blast of US data that may offer more clues on whether the Federal Reserve will trim interest rates next year.

The market showed a muted reaction to downbeat U.S. figures on Thursday. That lead some traders to conclude currency moves may also be constricted after personal consumption, durable goods orders and consumer sentiment reports are released later in the session.

''The currency market is already in a pre-holiday slumber and I doubt if there will be much activity,'' said a dealer at a Japanese trust bank.

The dollar held in ranges after data showed the U.S. economy in the third quarter grew slightly slower than forecast and the Philadelphia Fed reported a sharp drop in mid-Atlantic area factory activity.

The U.S. currency gained little following hawkish comments from Richmond Fed President Jeffrey Lacker, who said that U.S.

economic growth should pick up gradually next year and warned the main threat to this benign outlook was higher inflation.

Traders said that while the outlook for monetary policy in the United States and Japan remained uncertain, euro zone rates were expected to rise next year, helping to support the single currency.

''My positions remain long in the euro,'' the trust bank dealer said.

In early Tokyo trade, the dollar was little changed at 118.35 yen, off a fresh six-week high of 118.53 yen hit on Thursday.

The euro edged up to $1.3185 from around $1.3175, and crept up to 156.05 yen -- in sight of a record high of 156.42 yen hit in the previous session.

U.S. personal consumption data for November is due at 1330 GMT, with economists in a Reuters poll expecting a rise of 0.6 percent, while core personal consumption expenditure likely rose 0.2 percent for a second straight month.

For November durable goods orders, also due at 1330 GMT, economists expect a rise of 1.5 percent compared with a 8.2 percent fall in October.

REUTERS PKS RN0622