* U.S. dollar on track for best month since November
* Imminent U.S. rate rises still on investors' minds
* European shares stay close to one-month high
By Sudip Kar-Gupta
LONDON, May 27 (Reuters) - The dollar rose on Friday while
world stock markets were steady, as investors prepared for a
likely hike in U.S. interest rates in the next few months.
The MSCI All-Country World equity index .MIWD00000PUS
edged higher by 0.1 percent, with trading volumes relatively
light ahead of public holidays that will close London and New
York markets on Monday.
The pan-European FTSEurofirst 300 index .FTEU3 of leading
European shares was steady but remained around a one-month high
reached earlier this week, while U.S. futures made slight gains.
.N .EU
"Markets are doing remarkably well given that a U.S.
interest rate rise might happen as early as next month," said
Lex Van Dam, hedge fund manager at Hampstead Capital.
The dollar index .DXY rose 0.1 percent and was on track
for its best monthly performance since last November, after a
string of U.S Federal Reserve officials indicated that rates
could rise as soon as June given signs of strength in the
world's biggest economy.
Investors will looking for further clues on the likely
timing of a rate hike when Federal Reserve Chair Janet Yellen
speaks later in the day.
"I'm not sure if U.S. interest rates will go up in June, but
July is quite likely," said Clairinvest fund manager Ion-Marc
Valahu, who added that he had recently cancelled some earlier
"short" positions that bet on the dollar losing ground.
A stronger dollar often lifts European stocks as weakness in
the euro EUR= makes European companies' exports cheaper.
Some traders said stock markets were unlikely to make much
headway in the coming month, however, given uncertainties like
Britain's June 23 vote on its membership of the European Union.
"With the headwinds of a possible interest rate hike from
the Federal Reserve, and the EU referendum in June, there might
not be a huge amount of new money coming into the market," said
Manoj Ladwa, head of trading at TJM Partners.