(Updated at 10:37 a.m. ET/1437 GMT)

By Chuck Mikolajczak

NEW YORK, March 15 (Reuters) - A gauge of global stocks

was poised to snap a seven-week streak of gains on Friday, while

the dollar was on track for its strongest week since

mid-January, as recent U.S. inflation data has led to a

reassessment for the path of interest rates.

Equities have struggled for upward momentum this week, after

readings on U.S. consumer prices and producer prices indicated

inflation remains sticky, dampening expectations the U.S.

Federal Reserve will cut rates by its June meeting.

Markets are pricing in a 54.9% chance for a rate cut of

at least 25 basis points (bps) by the Fed in June, down from

59.5% in the prior session and 73.3% a week ago, according to

CME's

FedWatch Tool

. The central bank is widely expected to hold rates steady

at its policy meeting next week.

Data on Friday showed U.S.

import prices increased

marginally in February as a surge in the cost of petroleum

products was partially offset by modest gains elsewhere,

suggesting an improving inflation picture.

"We've taken a breather this week, and that's okay," said

Liz Young, head of investment strategy at SoFi in New York.

"Seeing certain stocks go up uninhibited, almost

unhinged, makes everybody a little nervous... A breather here,

particularly in the names that have seen that big run-up, is

healthy."

On Wall Street, the Dow Jones Industrial Average

fell 93.81 points, or 0.24%, to 38,810.44, the S&P 500

lost 22.68 points, or 0.44%, to 5,127.80 and the Nasdaq

Composite lost 101.22 points, or 0.63%, to 16,026.22.

In addition, a survey from the University of Michigan

showed its preliminary reading on consumer sentiment and

inflation expectations were little changed in March.

The dollar index gained 0.01% at 103.39, recouping

most of the prior week's decline, with the euro up 0.06%

at $1.0888. Sterling weakened 0.07% at $1.274.

Against the Japanese yen, the dollar strengthened

0.4% at 148.92. The Bank of Japan is expected to end its

negative interest rate policy at its meeting next week.

MSCI's gauge of stocks across the globe

fell 3.26 points, or 0.42%, to 769.39 and was poised for its

third straight decline, the longest streak since the start of

the year.

The STOXX 600 index edged down 0.01%, while

Europe's broad FTSEurofirst 300 index fell 0.89 points,

or 0.04%.

The yield on benchmark U.S. 10-year notes rose

1.8 basis points to 4.316% after reaching 4.322%, its highest

since Feb. 23. The 2-year note yield, which typically

moves in step with interest rate expectations, rose 3.4 basis

points to 4.7254%

Elsewhere, oil prices succumbed to some profit taking,

following strong gains this week amid sharp declines in U.S.

crude and fuel inventories, drone strikes on Russian refineries

and an increase in energy demand forecasts.

The oil benchmarks were on track toclose out the week with a

gain of more than 3%, even as U.S. crude was trading 0.6%

lower on the day at $80.77 a barrel and Brent fell 0.5%

to $84.96 per barrel.

Bitcoin edged away from an all-time high reached on

Thursday, as risk sentiment took a hit.