FOREX-Dollar drops as U.S. data reflect broad weakness

(Updates prices, adds detail)

NEW YORK, Feb 15 (Reuters) - The dollar slipped against most major currencies on Friday after data showing sharp declines in consumer sentiment and New York area manufacturing rekindled fears that the economy continues to slouch toward recession.

Investors pushed the dollar down against the euro for the fifth day in the last six, pushing the euro zone currency above $1.47 for the first time since Feb. 5, after a gauge of U.S. consumer sentiment plunged to a 16-year low in February.

The euro last traded at $1.4665 <EUR=>, up 0.2 percent on the day, after climbing as high as $1.4709, according to Reuters data.

The dollar also fell 0.3 percent to 107.60 yen <JPY=> after the New York Federal Reserve said its February manufacturing index posted the biggest monthly decline on record.

The data "is very, very negative, and it's going to be difficult to avoid negative U.S. growth in the first quarter," said Michael Woolfolk, senior FX strategist at The Bank of New York Mellon.

That sets the euro up for a run at its record high just shy of $1.50, said Woolfolk, particularly with the Federal Reserve seen cutting interest rates further below the European Central Bank's benchmark interest rate.

Indeed, Friday's batch of grim data comes a day after Fed Chairman Ben Bernanke warned of continued sluggish growth in the near term and said the central bank will act as needed to provide insurance against downside risks.

Since mid September, the Fed has slashed its benchmark rate by 2.25 percentage points to 3 percent. Bernanke's remarks and recent economic data have left investors betting on another half percentage point cut at the central bank's March meeting.