FOREX-Dollar advances after U.S. data, but on track for largest monthly fall since July

    * Robust U.S. data helps dollar
    * Investors taking profits in short dollar bets
    * Graphic: World FX rates

 (Adds new comment, U.S. data, FX table, updates prices, changes byline, dateline)
    By Gertrude Chavez-Dreyfuss
    NEW YORK, April 30 (Reuters) - The dollar rose on Friday, extending gains after upbeat data on U.S.
personal income and spending as well as manufacturing in the U.S. Midwest, with market participants also
taking profits on the currency's short dollar positions this month.
    The dollar index was down 2.4% for the month of April, its worst monthly performance since July 2020. 
    Data showing a 4.2% rebound in U.S. consumer spending in March, amid a 21.1% surge in income as
households received additional COVID-19 relief money from the government, supported the dollar. That led to
a 0.4% rise in the core personal consumption expenditures (PCE) index, compared with a gain of 0.3% the
previous month.
    "This will be the third time this year that the PCE reading has beaten expectations," Adam Corbett,
currency analyst, at Cambridge Global Payments, said in a research note after the data.
    "Fed Chair Jerome Powell remained firm on the Fed's interest rate path and QE (quantitative easing)
program on Wednesday, leaving traders with the uncomfortable feeling inflation could run away - and run away
    Similarly, the dollar also gained after the Chicago Purchasing Management Index (PMI) showed a reading
for April of 72.1, the highest in almost four decades.
    In mid-morning trading, the dollar index was set to end the week flat, although still down 2.4%
for the month as a whole. It was last up 0.4% at 91.007.
    "This current strength in the dollar is likely a pivot to that seasonal trend that we tend to see in May
and June," said Mazen Issa, senior currency strategist at TD Securities in New York.
    "Basically on the last day of Q1, we saw the dollar turn around to the softer side and continued
unabated since, despite strong payrolls at the start of April. Seasonal trends suggest that April is one of
the weaker months for the dollar."
    The Canadian dollar climbed to a more-than three-year high of C$1.2268 per greenback on Friday,
on track for a 1.6% weekly gain that would be its biggest since the start of November. The U.S. dollar was
last flat at C$1.2280.
    After the Fed's policy meeting on Wednesday, Powell acknowledged the U.S. economy's growth, but said
there was not yet enough evidence of "substantial further progress" toward recovery to warrant a change to
its ultra-loose monetary settings.
    The Fed's dovishness was in marked contrast to the Bank of Canada, which has already begun to taper its
asset purchases. Canada's commodity-linked loonie got additional support from a surge in oil to a six-week
peak, along with higher lumber prices.
    Rising commodity prices earlier supported the Australian dollar, but in New York session it was
down 0.3% at US$0.7740 because of broad dollar strength.
    The euro traded 0.4% lower at $1.2071. It was up nearly 3% for the month versus the dollar and
down 0.2% on the week.
    The dollar also rose against the yen, up 0.1% at 109.05, rising 1% for the week.
    Currency bid prices at 10:48AM (1448 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct       High Bid    Low Bid
                                              Previous                   Change                   
 Dollar index                 90.9450        90.6200     +0.37%         1.071%        +91.0450    +90.5880
 Euro/Dollar                  $1.2075        $1.2122     -0.38%         -1.17%        +$1.2127    +$1.2061
 Dollar/Yen                   109.0750       108.9150    +0.15%         +5.57%        +109.1200   +108.7100
 Euro/Yen                     131.71         131.99      -0.21%         +3.77%        +132.1900   +131.4600
 Dollar/Swiss                 0.9105         0.9089      +0.19%         +2.93%        +0.9118     +0.9082
 Sterling/Dollar              $1.3867        $1.3946     -0.56%         +1.50%        +$1.3958    +$1.3845
 Dollar/Canadian              1.2284         1.2278      +0.05%         -3.53%        +1.2294     +1.2266
 Aussie/Dollar                $0.7739        $0.7766     -0.34%         +0.60%        +$0.7784    +$0.7731
 Euro/Swiss                   1.0994         1.1013      -0.17%         +1.73%        +1.1022     +1.0985
 Euro/Sterling                0.8706         0.8691      +0.17%         -2.58%        +0.8717     +0.8682
 NZ                           $0.7196        $0.7243     -0.60%         +0.25%        +$0.7254    +$0.7192
 Dollar/Norway                8.2715         8.1895      +1.12%         -3.56%        +8.2815     +8.1820
 Euro/Norway                  9.9880         9.9355      +0.53%         -4.58%        +9.9915     +9.9215
 Dollar/Sweden                8.4203         8.3705      +0.21%         +2.73%        +8.4257     +8.3620
 Euro/Sweden                  10.1677        10.1460     +0.21%         +0.91%        +10.1746    +10.1385
 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Ritvik Carvalho, Editing by Hugh Lawson and
Mark Heinrich)