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· The dollar steadied against a basket of currencies early on Monday after slipping on soft U.S. economic data, with investors awaiting comments by a top Federal Reserve official for clues on whether recent strength can be sustained. The dollar index against a group of major currencies was down 0.05 percent at 97.108 .DXY.

The index had climbed to a two-week high of 97.560 late the previous week after the Fed raised interest rates and kept the door open for another hike in 2017. But its rally was tempered by Friday's weaker-than-expected housing and consumer sentiment data.

· The market is looking to comments by New York Fed President William Dudley for potential support for the greenback. Dudley, a close ally of Fed Chair Janet Yellen, is due to take part in a roundtable with local business leaders in Plattsburgh, New York.

"In the wake of Friday's weak U.S. data, Dudley could provide insight into whether the Fed is still poised to continue normalizing monetary policy," said Masafumi Yamamoto, chief forex strategist at Mizuho Securities in Tokyo.

"My view is that Dudley won't sound too dovish, and thus allow the dollar's gradual rise to resume."

· Dudley could help clarify why the Fed appeared to ignore a series of soft inflation readings as it marched on with tighter policy last week.

· The dollar was up 0.1 percent at 110.955 yen JPY=. It had set a two-week peak of 111.420 on Friday before its U.S. data-induced retreat. The euro was little changed at $1.1204 EUR= after gaining about 0.5 percent on Friday.

· Three straight months of declines in new-home construction show U.S. homebuilding may weigh on second-quarter growth, Commerce Department data showed Friday.

Construction on new houses fell in May for the third month in a row even though builders are optimistic about the economy, perhaps a sign a shortage of skilled workers is holding the industry back.

The pace of so-called housing starts declined by 5.5% to an annual rate of 1.09 million, marking the lowest level in eight months. Economists polled by MarketWatch had forecast housing starts to total 1.23 million.

· Consumer sentiment measured by the University of Michigan slipped in June to the lowest level since the presidential election in November, but the modest decline masked a sharper drop in the gauge just since June 8, after former FBI Director James Comey testified to Congress on his dealings with President Trump.

The UMich consumer sentiment gauge fell to 94.5 in early June from 97.1 in May. Economists surveyed by MarketWatch had expected a slight increase to 97.3. Instead, it is the lowest reading since November.

· Dallas Federal Reserve President Robert Kaplan on Friday signaled the decision to raise rates earlier this year was, for him at least, a tough decision in light of weak inflation readings in recent months.

"Before I’d be comfortable taking the next step in raising the fed funds rate, I’m going to want to see more evidence that we are making more progress" toward the Fed's 2-percent inflation goal.

· A day after the U.S. Federal Reserve tightened monetary policy, China's central bank effectively loosened, in a move that suggests Chinese authorities are now more concerned about financial turmoil inside the country than money flowing out of it.

The People's Bank of China on Friday injected a net 250 billion yuan ($36.73 billion) into the financial system--more than it has on any single day since mid-January, when demand for cash was high ahead of the Lunar New Year holiday.

· President Donald Trump's personal lawyer said on Sunday that Trump is not under investigation in the probe into alleged Russian meddling in the 2016 U.S. presidential race, adding that the president has not received any notification that he is being investigated.

· British government minister Andrea Leadsom said on Sunday it was "perfectly possible" to negotiate Britain's exit from the European Union in the next two years, as required by the rules of the trading bloc.

· Iran and China began a joint naval exercise in the Gulf on Sunday, the Islamic Republic News Agency (IRNA) reported.

· The military drill comes at a time of heightened tension between the Iranian and U.S. military in the Gulf and is likely to be a cause of concern for Washington.

· A U.S. warplane shot down a Syrian army jet on Sunday in the southern Raqqa countryside, with Washington saying the jet had dropped bombs near U.S.-backed forces and Damascus saying the plane was downed while flying a mission against Islamic State militants.

· Support for Japanese Prime Minister Shinzo Abe slumped more than 10 points to 44.9 percent in a public opinion poll published on Sunday, amid opposition party suspicions he used his influence unfairly to help a friend set up a business.

Abe has repeatedly denied abusing his authority to benefit his friend. His grip on power is not in danger, given his ruling coalition's huge majority in parliament, but the affair looks unlikely to fade away.

· Oil prices on Friday bounced up off the year's lows as some producers reduced exports and U.S. rig additions slowed, but the rebound was modest and crude posted its fourth weekly decline on persistent concerns about global oversupply.

Brent crude futures rose 45 cents to settle at $47.37 per barrel and U.S. West Texas Intermediate (WTI) crude settled at $44.74 per barrel, up 28 cents. Both benchmarks notched a weekly loss exceeding 1.6 percent.

Reference: Reuters, Market Watch, Bloomberg