* Dollar inches up; eye on Washington, the Fed

* Nasdaq hits record ahead of big tech earnings; Dow, S&P lag

* Oil rallies as Saudi Arabia vows to cap exports (Updates to late U.S. trading)

By Caroline Valetkevitch

NEW YORK, July 24 (Reuters) - The U.S. dollar rose from its lowest level in more than a year and U.S. Treasury yields climbed on Monday as investors braced for news from this week's U.S. central bank meeting and possible hints on when the next interest rate hike is coming.

Developments in Washington, weak U.S. economic data and reduced inflation expectations, have weighed on the dollar for much of the month.

The dollar index was last trading 0.2 percent higher at 94.006.

Many analysts and investors expect the Federal Reserve to announce that it will begin reducing its bond portfolio at its September meeting, but will await firmer indications on the timing of this effort at this week's meeting, which begins Tuesday.

Further interest rate hikes are not seen as likely until December. Futures traders are pricing in a 47-percent chance that the Fed will raise rates at its December meeting, according to the CME Group’s FedWatch Tool.

"The Fed is not expected to do anything as far as changing rates, but... if they get into the details about shrinking the balance sheet, that would be interesting to a lot of people," said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia.

Benchmark 10-year notes were last down 7/32 in price to yield 2.26 percent, up from 2.23 percent on Friday. The yields have fallen from 2.40 percent on July 7. Treasuries have rallied in the past two weeks on what analysts said are mainly technical factors.

Data this week includes U.S. gross domestic product for the second quarter which is due on Friday.

Stocks on global markets were mostly lower, though the Nasdaq hit a record high ahead of a big week of technology earnings reports. Johnson & Johnson's shares fell 1.5 percent after South Korea's Samsung Bioepis said it started U.S sales of the company's top-selling drug Remicade.

The Dow Jones Industrial Average was down 39.96 points, or 0.19 percent, to 21,540.11, the S&P 500 had lost 0.88 points, or 0.04 percent, to 2,471.66 and the Nasdaq Composite had added 18.48 points, or 0.29 percent, to 6,406.23.

MSCI's index of stock markets across the world was down 0.1 percent, while European shares ended down 0.2 percent.

Oil reversed earlier falls to advance after leading OPEC producer Saudi Arabia pledged to limit exports next month.

Brent September crude futures gained 54 cents to settle at $48.60 a barrel, while NYMEX crude for September delivery rose 57 cents to settle at $46.34.

Gold prices were up ahead of this week's Fed meeting.

Spot gold was up 0.1 percent at $1,255.79 an ounce.

(Additional reporting by Nigel Stephenson in London, Karen Brettell and Dion Rabouin in New York; Editing by Bernadette Baum and Nick Zieminski)