NEW YORK (Reuters) - The dollar rose to five-week highs against the euro and three-month peaks versus the yen Monday as investors further trimmed bearish bets on the greenback amid a growing view the Federal Reserve will not cut interest rates anytime soon.

Surprisingly strong US data last week on housing starts, regional manufacturing, jobless claims and consumer confidence have helped the dollar rebound more than two cents from a record low against the euro hit last month."The dollar is doing well against the euro and yen and (is helped by) the Goldilocks scenario in the US, where's there's not too much worry about a hard landing," said David Powell, currency strategist at IDEAglobal in New York.

A "Goldilocks" economy is neither too hot that it causes inflation and nor is it too cold that it fuels a "hard landing" in recession.

The interest rate futures market last week showed a 64 percent chance of Fed easing in 2007. At the beginning of this year, analysts were pricing in more than one rate cut.

The stock market's continued strength and comments from Fed officials showing no real jitters about the economy or contagion from the subprime mortgage market crisis have undermined prospects for Fed cuts, analysts said.

"Also...long euro/dollar has been a very crowded trade based on the specs (trading) data last week. Euro longs hit another record high and people are reluctant to bring it any higher without a fundamental story to back it up," Powell added.