* Fed's Powell says significant progress made on inflation
* US job openings rise in May -JOLTS report
* ECB's Lagarde says euro zone is advanced on disinflation path

By Gertrude Chavez-Dreyfuss
       NEW YORK, July 2 (Reuters) - The dollar slipped on Tuesday in thin,
choppy trading after Federal Reserve Chair Jerome Powell struck a moderately
dovish tone in his comments, suggesting that the U.S. central bank is more than
likely to start its easing cycle later this year.
    Powell, in a monetary policy conference in Portugal, said the U.S. economy
has made significant progress on inflation as it gets back on the
disinflationary path. His remarks were viewed as dovish, analysts said.
    Comments by the Fed's top official outweighed data showing U.S. job openings
increased in May after posting outsized declines in the prior two months. Job
openings, a measure of labor demand, rose 221,000 to 8.140 million on the last
day of May, according to the Job Openings and Labor Turnover Survey or JOLTS
report.
    Economists polled by Reuters had forecast 7.910 million job openings in May.
 Data for April was revised lower to show 7.919 million unfilled positions
instead of the previously reported 8.059 million.
        
    
        "Powell didn't really say anything new, but I would say he was slightly
dovish," said Erik Bregar, director, FX & precious metals risk management at
Silver Gold Bull in Toronto, adding that his remarks helped the dollar push a
little lower.
    "But I would argue that the JOLTS report is not as strong as it looks on the
surface. The April number was revised down and so the market is trying to shake
off the JOLTS report. That's why the dollar is not as high as it was initially
after the release."
    Following the JOLTS report and Powell's comments, U.S. rate futures have
priced in a 69% chance of a rate cut in September, up from about 63% on Monday,
according to LSEG calculations. The market has also priced in one to two rate
cuts in 2024.
    In afternoon trading, the dollar index, which measures the U.S. unit
against six other currencies, was down 0.1% at 105.71.
    
    BOOST FROM TREASURY YIELDS
    The dollar has been recently supported overall by the persistent rise in
Treasury yields.
    Benchmark 10-year Treasury yields rose nearly 14 basis points
(bps) to 4.479% overnight, with analysts linking the rise to expectations that
Donald Trump will win the U.S. presidency, in turn leading to higher tariffs and
government borrowing.
    On Tuesday, the yield on the 10-year note pulled back, sliding 4.3 bps to
4.435%.
    Against the yen, the greenback was flat at 161.48. It hit 161.745
earlier on Tuesday, its highest in nearly 38 years, driven mainly by the wide
gap in interest rates between the U.S. and Japan.
    Japan's finance minister said on Tuesday authorities were vigilant to sharp
currency market moves, but stopped short of giving a clear intervention warning.
    "The market just doesn't believe it when the Bank of Japan and their
monetary officials say that they're monitoring the yen closely," said Silver
Gold Bull's Bregar.
    Against the euro, the yen touched a lifetime low of 173.67 on
Monday and was just shy of that level on Tuesday, while against the Australian
dollar the yen was near its lowest in 33 years as carry trade remained
attractive.
    The euro was flat against the dollar at $1.0741, showing little
reaction to comments on Tuesday from European Central Bank President Christine
Lagarde, who was in the same monetary policy forum with Powell. She said the
euro zone is "very advanced" on the disinflationary path but there remain
"question marks" hanging over the outlook for economic growth. 
    Euro zone inflation eased last month but a crucial services component
remained stubbornly high, fuelling concern that domestic price pressures could
stay at elevated levels. 
    The market is now looking to the second round of French elections during the
weekend.
    In other currencies, sterling rose 0.3% against the dollar to $1.2683
, but not far from the roughly two-month low hit last week.
    The Aussie dollar was up 0.1% at US$0.6668, with traders weighing
central bank minutes, which showed much discussion about whether policy was
tight enough to ensure inflation would slow as desired.
    
    
 Currency                                                          
 bid                                                              
 prices at                                                        
 2 July                                                          
 07:11                                                            
 p.m. GMT                                                         
 Descripti  RIC    Last      U.S.       Pct     YTD Pct  High     Low
 on                          Close      Change           Bid      Bid
                             Previous                             
                             Session                              
 Dollar     <=USD  105.7     105.84     -0.12%  4.27%    106.05   105.
 index      >                                                     71
 Euro/Doll                                                    71
 Dollar/Ye                                                     295
 Euro/Yen                                                     09
 Dollar/Sw                                                    28
 Sterling/                                                     71
 Dollar/Ca                                                     75
 Aussie/Do                                                     634
 Euro/Swis                                                    82
 Euro/Ster                                                    67
 NZ                                                            48
 llar                                                             
 Dollar/No                                                       506
 Euro/Norw                                                    295
 Dollar/Sw                                                       89
 Euro/Swed                                                    75
 
    
 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Stefano Rebaudo
in Milan, Amanda Cooper in London, Tom Westbrook and Ankur Banerjee in
Singapore; Editing by David Holmes and Trevor Hunnicutt)