TOKYO, Feb 19 The dollar hit a six-week low against the Swiss franc on Monday after weak

TOKYO, Feb 19 (Reuters) The dollar hit a six-week low against the Swiss franc on Monday after weak U.S. housing data late last week further fuelled expectations that the Federal Reserve may start cutting interest rates this year.

The dollar also stayed near a six-week low against the euro and a five-week trough versus the yen after the U.S. government report showed on Friday that the pace of home construction fell 14.3 percent in January, the sharpest drop since October.

But trade was quiet and investors remained hesitant to bet aggressively as markets in China, Hong Kong and Singapore were closed for the Chinese new year, traders said.

U.S. financial markets also will be shut on Monday to mark the Presidents Day holiday.

The market's main focus at the moment was whether the Bank of Japan would raise the overnight call rate to 0.5 percent from a current 0.25 percent at its two-day policy meeting kicking off on Tuesday, traders said.

''Market participants are finding it difficult to sell the yen until the BOJ policy meeting,'' said a trader at a Japanese brokerage.

The yen rallied last week after strong GDP growth data in October-December boosted expectations for a February rate hike.

Market players see about a 50/50 chance of a BOJ rate raise this week.

The dollar edged down to 119.35 yen from around 119.45 yen in late U.S. trading on Friday, when the U.S. currency hit a five-week low of 118.98 yen on electronic trading platform EBS.

The dollar was at 1.2330 Swiss francs after hitting a six-week low around 1.2315.

The euro was a touch firmer at $1.3150 within striking distance of a six-week high on EBS of $1.3173 struck on Thursday.

REUTERS PKS VP0612