FOREX-Dollar rebounds on 2015 rate hike bets; Yellen eyed

(Recasts, new quote, changes dateline from previous SINGAPORE/SYDNEY)

* Fed officials signal still on track for 2015 rate hike

* Dollar extends previous day's bounce from lows

* Speech by Fed Chair Yellen next in focus

By Jemima Kelly

LONDON, March 27 (Reuters) - The dollar climbed broadly on Friday, extending a rebound begun the previous day after Federal Reserve officials signalled they were still on track to raise interest rates this year.

At separate events on Thursday, the presidents of the St Louis Fed and Atlanta Fed said an adjustment away from ultra-loose monetary policy might be needed in light of the U.S. economy's steady improvement since the 2007-2009 financial crisis.

Those comments, as well as strong U.S. jobs and service sector data, helped the dollar recover after losing as much as 4 percent against a basket of currencies since the Fed trimmed its growth and inflation forecasts in its policy statement last week .

The greenback was half a percent higher against the basket on Friday at 97.809, still a long way off its 12-year high above 100 struck two weeks ago but almost 2 percent above the previous day's low.

Against the euro, the dollar gained 0.6 percent to $1.0822, having already risen 0.8 percent after Thursday's U.S. data and Fed comments.

"It's pretty clear that the market psychology is still to buy the dollar on dips, and hence we had this huge reversal in the dollar," said Alvin Tan, a currency strategist at Societe Generale in London.

Traders will be listening closely to a speech by Fed Chair Janet Yellen scheduled for 1945 GMT.

Against the yen, the dollar climbed 0.2 percent to 119.455 but was on track for a second weekly loss after last week's cautious Fed tone had prompted traders to scale back bullish bets on the greenback.

The dollar is likely to see some range-trading against the yen for now, said Stephen Innes, senior trader for FX broker OANDA in Singapore, adding that levels near 119.40-119.50 yen may serve as near-term resistance.

"We think low and falling real (interest) rates are likely to keep euro zone and Japanese investors focused on selling their currencies into rallies, and we expect the dollar to benefit," analysts at BNP Paribas (LSE: 0HB5.L - news) said in a research note to clients.

Providing welcome relief for dollar bulls, data on Thursday showed the number of Americans filing new claims for jobless benefits fell more than expected last week. A separate report showed activity in the services sector at a six-month high in March. (Additional reporting by Masayuki Kitano in Singapore and Ian Chua in Sydney; Editing by Susan Fenton)