* US GDP grows 5.7 pct in Q4, Chicago PMI also stronger
* Euro hits 6-1/2-month low versus dollar on fiscal woes
* Dollar index climbs to more than 5-month high (Adds quotes, updates prices)
By Wanfeng Zhou
NEW YORK, Jan 29 (Reuters) - The dollar rose against major currencies on Friday after a slew of stronger-than-expected data boosted the view the U.S. economy was recovering faster than other developed countries.
The euro fell to its lowest level since mid-July, just above $1.39, as investors remained concerned about the fiscal health of some of the smaller euro zone countries, such as Greece and Portugal.
The U.S. economy grew at a faster-than-expected 5.7 percent clip in the fourth quarter, the quickest pace in more than six years. Separate reports showed business activity in the U.S. Midwest expanded more than expected, while consumer sentiment hit a two-year high.
"The market is looking at this as a sign of U.S. resilience and contrasting it with signs of weakness in the euro zone and UK and even Asia," said Brian Dolan, chief currency strategist at Forex.com in Bedminster, New Jersey. "So that's a reason the dollar is benefiting, and I'd have to reckon with a higher dollar in the coming weeks."
In morning trading, the dollar rose 0.9 percent to 90.72 yen, after climbing to 90.92, the highest in about a week, according to Reuters data.
The euro traded at $1.3912, down 0.4 percent on the day. It had fallen to $1.3903, the lowest since July 13, according to Reuters data.
EU Monetary Affairs Commissioner Joaquin Almunia said Friday an EU bailout for Greece was not possible, sparking a widening in the premium that investors demand to hold 10-year Greek government bonds rather than benchmark German bunds.
The ICE Futures U.S. dollar index, a measure of the greenback versus a basket of six major currencies, hit a high of 79.327, the best since mid-August. It last traded up 0.4 percent.