* Dollar index hits lowest level since Dec
* Initial claims, PPI up more than expected
* Futures: Dow off 16 pts, S&P off 1.2 pts, Nasdaq up 0.5 (Adds data, Grainger earnings)
By Chuck Mikolajczak
NEW YORK, Oct 14 (Reuters) - U.S. stocks were poised to open slightly lower on Thursday after the dollar index dropped to its lowest point this year and jobless claims unexpectedly rose.
The U.S. dollar index hit a low for the year while the Australian dollar flirted with parity after Singapore widened its currency's trading band, piling more pressure on the struggling greenback.
The dollar has been burdened by 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.
"The dollar is the catalyst here. This is a pretty big break at this level. We were holding slightly below 78, then you are getting another leg down," said Marc Pado, U.S. market strategist, Cantor Fitzgerald & Co. in San Francisco. The dollar index fell 0.6 percent at 76.592.
"This kind of a move puts pressure on the Fed to basically accommodate the market. If they don't accommodate the markets, they know what the reaction is going to be, and that's not what they want to see," Pado added.
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.
S&P 500 futures dipped 1.2 points and were slightly below 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 lost 16 points, and Nasdaq 100 futures advanced 0.5 point.
Futures trimmed gains after government data showed new claims for unemployment insurance rose more than expected in the latest week, while rising food and energy prices pushed inflation at the wholesale level up twice as fast as forecast last month.
Several private equity firms have approached Internet and media companies, including News Corp and AOL Inc, about buying Yahoo Inc, a source said. Yahoo jumped 12.4 percent to $17.14 premarket.
Industrial distributor WW Grainger Inc posted quarterly profits that topped estimates and raised its forecast for the full year. Still, shares dipped 1.6 percent to $123.25 premarket.
Google Inc and Advanced Micro Devices Inc are due to report results later in the day.