* Lockhart's view renews bets on Fed raising rates in Sept.
* Weaker dollar earlier spurred rise in oil, commodity
prices
* Aussie jumps after RBA tones down its weak currency views
* Canadian dollar falls to 11-year lows vs greenback
(Updates market action, adds quote)
By Richard Leong
NEW YORK, Aug 4 (Reuters) - The dollar rose on Tuesday as a
top U.S. Federal Reserve official voiced support for an interest
rate increase in September despite a batch of disappointing data
on wages and manufacturing activity.
Atlanta Fed President Dennis Lockhart told the Wall Street
Journal said it would take "significant deterioration" in the
U.S. economy for him to not support a rate hike in September.
Lockhart is a voter this year on the Federal Open Market
Committee, the Fed's policy-setting group. He has a reputation
as a centrist and has sided with Fed Chair Janet Yellen on her
policy stance.
"He is seen as a swing vote and he has become increasingly
hawkish," said Ian Gordon, G10 currency strategist at Bank of
America Merrill Lynch in New York.
Lockhart's remarks jolted the dollar, which had been stuck
in a narrow range against most currencies and whose earlier
losses had boosted currencies closely linked to commodities.
The dollar index .DXY was up 0.5 percent at 97.957, wiping
out earlier losses.
The greenback rose 0.3 percent on the day to 124.33 Japanese
yen JPY= , while the euro fell 0.6 percent at $1.0883 EUR= .
A record small rise in second-quarter U.S. wages posted on
Friday and a surprise fall in a private measure of domestic
manufacturing activity on Monday had raised doubts about a
possible Fed interest rate hike in September.
Bets that the Fed would delay a hike had hurt the greenback
and stabilized the currencies of oil and other commodity
exporters like Canada.
The Canadian dollar fell to its lowest since August 2004. It
last traded at C$1.3182 per U.S. dollar.
Commodities markets had weakened on worries about excess
supply and falling demand from China.
Brent crude prices in London hit a six-month low before
recovering 1 percent at $49.99 a barrel, while benchmark
copper prices was up 0.35 percent.
The Australian dollar jumped after that country's central
bank, in a policy statement, dropped a long-used reference about
a further decline of the Aussie being necessary to support the
economy. Analysts cautioned that the Aussie's long-term
prospects remain weak.
"I wouldn't rush out to declare the four-year downtrend in
the Aussie against the dollar over, but it's not the most
attractive short looking forwards," said Kit Juckes, a
strategist with Societe Generale (PARIS:SOGN) in London.
The Aussie was up 1.3 percent at $0.7382,
recovering further from a six-year trough of $0.7234 set last
week.