* Renewed euro zone jitters weigh on euro
* Upbeat U.S. data further shores up dollar
SYDNEY, Feb 11 (Reuters) - The U.S. dollar drifted higher early in Asia on Friday, having made solid gains overnight as renewed jitters about the euro zone debt crisis weighed on the common currency.
U.S. data showing new applications for unemployment benefits dropped to a 2-1/2 year low last week also helped shore up the greenback, which held near one-mont highs against the yen.
"Any easy gains in the EUR are susceptible to rapid reversal," said David Watt, senior currency strategist at RBC Dominion Securities.
"Overnight EU peripheral jitters reemerged ... EUR reacted as one might expect, it sold off from just over $1.37 to a low of $1.3577."
The euro last traded at $1.3600 . Support is seen at around $1.3483, a level representing the 38.2 percent retracement of the Jan. to Feb. rally.
Traders said the European Central Bank stepped in to buy Portuguese bonds after yields on the country's debt hit euro-era highs on a perceived lack of progress towards resolving the block's year-long debt crisis.
The dollar index , which tracks the greenback's performance against a basket of major currencies, was last at 78.189, near a one-week high around 78.336 set overnight.
Against the yen, the dollar reached a high around 83.37 yen before last trading at 83.20 yen.
Meanwhile the Australian dollar hovered at 1-1/2 week lows after suffering a steep decline on Thursday in the wake of the jobs data.
The Aussie fell to a low of $1.0010, before recovering slightly to $1.0044.
All eyes are on Reserve Bank of Austrlaia head Glenn Stevens' semi-annual testimony to the House of Economics Committee.
soucer:http://www.reuters.com/article/2011/02/10/markets-forex-idUSL3E7DA2MU20110210
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