* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
* Dollar index hovers near 2-week high
* Strong U.S. housing, employment-related data supportsgreenback
TOKYO, May 17 (Reuters) - The dollar hovered near a two-weekhigh against its peers on Friday, supported by strong U.S.economic data and a bounce in Treasury yields.
The dollar index versus a basket of six major currencies .DXY was at 97.832 after reaching 97.882 on Thursday, itshighest since May 3.
The greenback reached the two-week peak on robust U.S.housing data and a weekly jobless claims report which pointed tosustained labour market strength for the world's biggesteconomy. urn:newsml:reuters.com:*:nL2N22R1F7urn:newsml:reuters.com:*:nLNSGGEF42
The U.S. currency also drew strength as its counterpartssuch as the euro and pound were confronted with a number ofbearish factors.
"The euro is weighed down as the (euro) zone is saddled withweak economic fundamentals and Italian political concerns, whileits all about Brexit for the pound," said Junichi Ishikawa,senior FX strategist at IG Securities in Tokyo.
Italy's right-wing League party will "tear apart" EuropeanUnion rules which are "strangling" the country if it scores wellin a May 23-26 European parliamentary election, Italian DeputyPrime Minister Matteo Salvini said on Thursday. urn:newsml:reuters.com:*:nS8N22Q099
The euro was steady at $1.1175EUR= after falling to$1.1166 overnight, its lowest since May 6. The single currencyhas shed 0.55% this week.
Britain faces a potentially disorderly exit from theEuropean Union as Prime Minister Theresa May has struggled tokeep her Brexit deal and her premiership.
The possibility of a chaotic departure from the EU haspushed the pound to a three-month trough of $1.2788GBP=D4 onThursday. Sterling last stood at $1.2796, having slumped 1.5%this week.
The dollar was nearly flat at 109.850 JPY= after gaining0.2% the previous day.
Against the safe-haven yen the greenback fell to a3-1/2-month low of 109.020 at the start of the week when a tradewar between the United States and China intensified.
The Australian dollar was steady at $0.6891AUD=D4 .
The Aussie was in close reach of a 4-1/2-month trough of$0.6886 plumbed on Thursday after soft domestic employment dataheightened expectations for an interest rate cut by the ReserveBank of Australia.
The 10-year U.S. Treasury note US10YT=RR yielded 2.396%,having pulled back from a near two-month low of 2.354% brushedthe previous day. (Reporting by Shinichi Saoshiro; Editing by Kim Coghill) ((firstname.lastname@example.org; Reuters Messaging:email@example.com+813-6441-1774))