US STOCKS-Futures edge higher after dollar rally subsides

* Futures up: Dow 19 pts, S&P 2.5 pts, Nasdaq 4.75 pts

By Tanya Agrawal

May 27 (Reuters) - U.S. stock index futures were higher on Wednesday as the dollar retreated from its largest gain in two years and as worries about Greece receded.

* In early European trading, the dollar was down around a third of one percent against a basket of currencies, after jumping 1.3 percent on Tuesday, its biggest rise since July 2013.

* Greece and its European creditors have also played down fears that Athens would default on a payment to the International Monetary Fund next week.

* U.S. stocks recorded their steepest fall in three weeks on Tuesday as the dollar rallied after buoyant data fueled expectations that an interest rate hike could come sooner rather than later.

* Applications for U.S. home mortgages fell last week as interest rates rose, an industry group said on Wednesday.

* Tiffany's shares were up 6.6 percent to $91.19 in premarket trading after the luxury jeweler's quarterly profit beat estimates.

* Michael Kors Holdings fell 11 percent to $53.92 after the handbag maker reported its slowest sales growth in at least three and a half years as demand in North America weakened.

* Workday (NYSE: WDAY - news) fell 8.6 percent to $84.50 after the software maker for human resource work forecast current-quarter billings below market expectations and reported a bigger quarterly net loss.

Futures snapshot at 7:29 a.m. ET (1129 GMT):

* S&P 500 e-minis were up 2.5 points, or 0.12 percent, with 104,224 contracts traded.

* Nasdaq 100 e-minis were up 4.75 points, or 0.11 percent, on volume of 11,526 contracts.

* Dow e-minis were up 19 points, or 0.11 percent, with 16,115 contracts changing hands. (Editing by Savio D'Souza)