FOREX-US dollar gains after GDP, jobless claims data; rate hike bets intact

(Recasts, adds analyst comment, U.S. GDP, jobless claims, bullets, FX table, changes dateline) * U.S. GDP rises less than expected * Markets focus on inflation reading within GDP * U.S. jobless claims fall * Fed still seen raising interest rates by 25 bps next week By Gertrude Chavez-Dreyfuss NEW YORK, April 27 (Reuters) - The dollar rose on Thursday as weaker-than-expected U.S. economic growth in the first quarter is not likely to deter the Federal Reserve from raising interest rates next week. The advance estimate of first-quarter gross domestic product (GDP) showed a 1.1% annualized rate during the period. The economy grew at a 2.6% pace in the fourth quarter. Economists polled by Reuters had forecast GDP rising at a 2.0% rate. However, investors focused on the quarterly inflation number within the GDP report. Core personal consumption expenditure prices rose 4.9% in the first three months of the year, higher than the consensus figure of 4.7% and up from the fourth quarter figure. "The knee-jerk reaction was to sell the dollar because yields turned lower after the weaker-than-expected GDP, but the market seemingly wanted to focus on the higher quarterly core PCE number," said Erik Bregar, director, FX and precious metals risk management at Silver Gold Bull in Toronto. He added that the weak GDP, especially with the higher core PCE, should not prevent the Fed from raising rates by 25 basis points at next week's policy meeting. Markets have priced in an 88% probability of that rate increase for May. A separate report from the Labor Department on Thursday showed initial claims for state unemployment benefits decreased 16,000 to a seasonally adjusted 230,000 for the week ending April 22. Economists had expected 248,000 claims in the latest week. The report suggested a still tight labor market and also underpinned next week's rate increase expectations. The greenback turned positive against the yen after the data, and was last up 0.3% at 134.04 yen . The dollar index rose 0.4% to 101.72. The euro, meanwhile, fell 0.4% to $1.10. ======================================================== Currency bid prices at 9:18AM (1318 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Dollar index 101.7400 101.3900 +0.36% -1.691% +101.7600 +101.2800 Euro/Dollar $1.1001 $1.1039 -0.34% +2.67% +$1.1063 +$1.0998 Dollar/Yen 134.0700 133.6900 +0.29% +2.27% +134.0850 +133.2000 Euro/Yen 147.46 147.56 -0.07% +5.10% +147.9900 +147.1500 Dollar/Swiss 0.8971 0.8913 +0.66% -2.98% +0.8975 +0.8905 Sterling/Dollar $1.2447 $1.2470 -0.17% +2.94% +$1.2489 +$1.2437 Dollar/Canadian 1.3638 1.3639 -0.03% +0.63% +1.3645 +1.3615 Aussie/Dollar $0.6603 $0.6604 -0.01% -3.12% +$0.6635 +$0.6601 Euro/Swiss 0.9867 0.9838 +0.29% -0.28% +0.9879 +0.9834 Euro/Sterling 0.8836 0.8853 -0.19% -0.09% +0.8872 +0.8837 NZ $0.6125 $0.6115 +0.19% -3.51% +$0.6157 +$0.6116 Dollar/Dollar Dollar/Norway 10.6530 10.6440 +0.00% +8.46% +10.6600 +10.6010 Euro/Norway 11.7140 11.7280 -0.12% +11.63% +11.7660 +11.7005 Dollar/Sweden 10.3367 10.3233 -0.22% -0.68% +10.3526 +10.2889 Euro/Sweden 11.3723 11.3973 -0.22% +2.00% +11.4097 +11.3654 (Reporting by Gertrude Chavez-Dreyfuss; Editing by Toby Chopra and Jonathan Oatis)