* But recent rises in U.S. yields signal support for dollar

* Support for dollar index at 100-day MA near 79.30

* AUD dips, BHP Billiton sees China iron ore demand flattening

By Masayuki Kitano

SINGAPORE, March 20 (Reuters) - The dollar hovered near a one-week low against a basket of currencies on Tuesday, but recent signs of improvement in the U.S. economy and rising Treasury yields were likely to lend it some support.

The dollar index was marginally higher at 79.533 by 0540 GMT, regaining a bit of ground after dipping to 79.354 on Monday, its lowest level since March 9. One possible support level lies roughly around 79.30, its 100-day moving average.

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