The dollar steadied against the yen on Thursday, underpinned by U.S. economic data that reinforced expectations the Federal Reserve would not lower interest rates soon. Although Wednesday's data was mixed, with new building permits falling to near a five-year low, the dollar found some support from an unexpected rebound in housing starts in September, traders said. "U.S. data has been pointing toward a soft landing.... Expectations for an interest rate cut have been declining significantly," said a trader at a major Japanese bank. Traders have turned their attention to the October reading for the Philadelphia Fed's index of manufacturing activity due later in the session. The index for the mid-Atlantic states is seen rising to 7.0 after falling to minus 0.4 in September, the first negative reading since April 2003 and a trigger for expectations among some investors that the Fed could cut rates next year.