By Ankur Banerjee
       SINGAPORE, Dec 15 (Reuters) - The dollar languished near
four-month lows on Friday, weighed by growing prospects of U.S.
interest rate cuts next year, while the euro and pound found
support as the central banks there reiterated the need for rates
to stay higher for longer.
    In an action-packed week for central banks, traders found
more clarity on when interest rate cuts were likely after
Federal Reserve Chair Jerome Powell said at Wednesday's meeting
that the tightening of monetary policy is likely over, with a
discussion of cuts coming "into view". 
    The Fed's projections implied 75 basis points of cuts next
year, from the current level.
    That has resulted in the greenback sliding broadly against
rivals, with the dollar index at 102.05, not far from the
four-month low of 101.76 it touched on Thursday. The index is
down 1.9% and on course for its steepest weekly decline since
July.
    On Thursday, the European Central Bank and Bank of England
pushed back against bets on imminent cuts to interest rates and
reiterated their focus on the fight against inflation, helping
lift the euro and pound.
    The euro was at $1.0983, just shy of $1.1009, a
two-week high it touched on Thursday. The single currency is up
2% this week, its largest rise in four weeks.  
    Sterling was last at $1.2752, down 0.11% on the
day, having surged 1.1% and scaling a four-month peak of $1.2793
on Thursday.
    Chris Weston, head of research at Pepperstone, said the
aftermath of the central bank fest is that the market has
brought forward the timing of cuts expected in 2024.
    "We knew 2024 was a year of normalising policy, but the
timing and the start date were a growing debate," said Weston,
adding that March is when markets expect to see most central
banks to start easing their monetary policy. 
    Markets are now pricing in a 75% chance of a rate cut in
March by the Fed, according to CME FedWatch tool. They are also
pricing in 150 basis points in rate reductions by Dec. 2024.  
    The ECB have more scope than most to ease, according to
Pepperstone's Weston, given low growth and a rapid decline in
inflation.
    "However, the pushback from (ECB President) Lagarde and co
suggests conjecture on the timing of initial easing – perhaps
this is a function that its desirable to keep one's currency
strong to limit imported inflation."
    Meanwhile, the Japanese yen weakened 0.20% to
142.16 per dollar in Asian hours, having surged 0.7% and
touching a four-and-a-half month high on Thursday ahead of the
Bank of Japan's meeting next week.
    The Asian currency is up 2% this week and on course for its
biggest weekly gain against the dollar since July.
    Expectations of the BOJ to exit its ultra loose monetary
policy have faded with the central bank likely to end the year
as one of the world's most dovish.
    Market focus will be on any hints Governor Kazuo Ueda may
offer at his post-meeting briefing on the timing of an exit from
negative interest rates.
    Elsewhere, the Australian dollar rose 0.06% to
$0.670, while the New Zealand dollar eased 0.03% to
$0.620.
========================================================
    Currency bid prices at 0119 GMT
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar                  $1.0985        $1.0992     -0.05%         +2.52%      +1.0996     +1.0978
 Dollar/Yen                   142.1350       141.8250    +0.21%         +8.30%      +142.4600   +142.1200
 Euro/Yen                                                                                     
 Dollar/Swiss                 0.8675         0.8677      -0.01%         -6.17%      +0.8681     +0.8672
 Sterling/Dollar              1.2756         1.2767      -0.09%         +5.47%      +1.2771     +1.2748
 Dollar/Canadian              1.3407         1.3407      +0.04%         -1.01%      +1.3415     +1.3405
 Aussie/Dollar                0.6703         0.6698      +0.06%         -1.68%      +0.6704     +0.6694
 NZ                           0.6203         0.6207      -0.06%         -2.31%      +0.6214     +0.6196
 Dollar/Dollar                                                                                  
                                                                                                
    
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Volatilities 
Tokyo Forex market info from BOJ 

    
 (Reporting by Ankur Banerjee in Singapore. Editing by Sam
Holmes)