* Dollar off 15-mth low as mkt digests Bernanke comments
* Euro once again unable to hold above $1.50
* Soft U.S. PPI gives more ammo to low-rate argument
* China's Hu makes no mention of yuan after Obama meeting
(Recasts, updates prices, adds comment, quote; changes byline, dateline, previous London)
By Steven C. Johnson
NEW YORK, Nov 17 (Reuters) - The dollar rebounded on Tuesday from a recent 15-month low after Federal Reserve Chairman Ben Bernanke's rare comments on the currency spurred traders to trim long-term bets against the greenback.
Bernanke surprised investors on Monday when he said the central bank was "attentive to implications of changes in the value of the dollar," although he reiterated that interest rates would remain exceptionally low for an "extended period."
Some interpreted his remarks on the dollar, which is usually the purview of Treasury, as a sign the Fed is worried further depreciation could stoke inflation.
"Though not sounding an overtly alarmed tone over the value of the dollar, commenting on the currency shows that the Fed is concerned enough....to at least address the issue," said Camilla Sutton, a strategist at Scotia Capital in Toronto.
The dollar is still in a long-term decline, analysts said, and weaker-than-expected U.S. inflation and industrial output data offered little reason for the Fed to rush into higher interest rates.
Bernanke's remarks were probably aimed more at "smoothing" the dollar's decline than reversing it, said Societe Generale strategist Peter Frank. He added that traders were "a little uncomfortable" being long of euros above $1.50.
The euro fell 0.7 percent to $1.4872, off a $1.5015 high on Monday. Traders said it was weighed down early on by profit taking and options-related selling around that level.
It was in the middle of the $1.48-$1.51 range that they expires on Friday.
European Central Bank President Jean-Claude Trichet also spoke on currencies on Tuesday, reiterating his view that a strong dollar is in the U.S. interest and that the euro was never intended to be a reserve currency.
The dollar rose 0.2 percent to 89.25 yen, recovering from 88.74 yen earlier in the day, its lowest in more than a month. Sterling fell 0.2 percent to $1.6796.
The dollar also benefited as investors trimmed exposure to risk, with equity, oil and gold prices all lower, gaining particularly against commodity-linked currencies such as the Australian and Canadian dollars.
"Despite slightly higher Treasury yields, the overall tone is more cautious on risk," said Alan Ruskin, a strategist at RBS Securities in Greenwich, Connecticut. The euro, he said, is not an attractive short-term buy above $1.4805.
FED RHETORIC
Bernanke's comments on Monday came as U.S. President Barack Obama was in China, although few expect the visit to result in any near-term changes in Beijing's foreign exchange policy.
Chinese President Hu Jintao did not mention the yuan after meeting Obama, who only said he was pleased with China's commitment to move toward a more market-oriented exchange rate.
For the dollar to reverse its long-term downtrend, analysts say China needs to take steps toward a more flexible currency regime, or the Fed has to signal imminent rate hikes.
"Neither of those prerequisites have been fulfilled, so the controlled, grinding lower of the dollar will continue," Javeus said Johan Javeus, strategist at SEB in Stockholm.
(Additional reporting by Jamie McGeever and Jessica Mortimer in London) (Editing by Theodore d'Afflisio)