US STOCKS-Futures rise as dollar woes extend

* Dollar index hits lowest level since Dec

* Initial jobless claims, PPI on tap

* Futures up: Dow 15 pts, S&P 2.4 pts, Nasdaq 5.5 pts

* For up-to-the-minute market news see [STXNEWS/US] (Adds details, updates prices)

By Chuck Mikolajczak

NEW YORK, Oct 14 (Reuters) - U.S. stock index futures rose on Thursday, indicating stocks will extend five-month highs after the dollar index dropped to its lowest point this year as earnings season picks up steam.

The U.S. dollar index <.DXY> hit its weakest since December, while the Australian dollar soared to a 28-year peak and Singapore widened its currency's trading band, piling more pressure on the struggling greenback. For details, see [ID:nLDE69D14O]

The dollar has been under pressure on expectations of more U.S. Federal Reserve stimulus, especially after the central bank indicated it may again flood markets with cheap cash "before long" to boost growth. [ID:nN12188145]

"It's been the trend for at least this fall and that is what you get when you print more dollars," said Kim Caughey senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.

"Right now everybody is guessing about the Fed, maybe it's sell the rumor, buy the news whenever we do figure out what the actual quantity of quantitative easing is going to be."

The prospect of additional Fed stimulus has created an inverse correlation between the dollar and equities, with a decline in the greenback sparking a move into equities. [ID:nLDE69B0OQ]

S&P 500 futures rose 2.4 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures climbed 15 points, and Nasdaq 100 futures advanced 5.5 point.

Economic data on tap Thursday includes weekly initial jobless claims, the producer price index for September and international trade for August.

Wall Street expects initial claims of 445,000, unchanged from the prior week. Producer prices are expected to increase 0.2 percent in September, down slightly from the previous 0.4 percent rise.

Google Inc , Advanced Micro Devices Inc , W.W. Grainger Inc and Safeway Inc are expected to report quarterly results later in the day.

Several private equity firms have approached Internet and media companies, including News Corp and AOL Inc to gauge interest in buying Yahoo Inc , a source said. Yahoo was up 15.4 percent to $17.60 in premarket trading. [ID:nN13281610]

European shares hit their highest in more than five months, boosted by hopes of more monetary easing in the United States, a robust earnings season, and with miners higher on stronger metals prices. [.EU] (Editing by Jeffrey Benkoe)