US STOCKS-Wall St bounces back from Tuesday selloff as dollar eases
* Euro rises against dollar as Greece default fears fade
* Michael Kors slumps on weak sales; weighs on rivals
* Tiffany gains as results beat estimates
* Indexes up: Dow 0.5 pct, S&P 0.6 pct, Nasdaq 0.8 pct (Adds details, changes comment, updates prices)
By Tanya Agrawal
May 27 (Reuters) - U.S. stocks were up in late morning trading on Wednesday, rebounding strongly from their steepest fall in three weeks on Tuesday, as the dollar's rally eased on reports that Greece would avoid a default.
The euro rose against the dollar, erasing earlier losses, prompted by reports that Greece and its creditors are closer to striking a deal.
The dollar enjoyed its biggest rally in two years on Tuesday, spurred by buoyant U.S. economic data that fueled expectations of an interest rate hike coming sooner rather than later this year.
The strong dollar, which means that U.S. companies earn less when sales abroad are brought back, and concerns about Greece had weighed heavily on Wall Street. Continuación...