* Fears of dollar squeeze seen in Thai, Indian markets * Worries grow that Greek debt crisis will spread * New Zealand swaps curve shifts upwards, rate hike seen

HONG KONG, May 6 (Reuters) - Thai swaps and Indian currency forwards fell on Thursday on persistent fears that euro zone debt problems could lead to a shortage of dollars as investors move into the safety of the U.S. currency.

New Zealand swaps rose across the curve with the shorter end showing a bigger jump relative to the longer contracts resulting in a flattening move, following hawkish comments from the central bank and strong labour data.

In Thailand, swap offered rates fell amid concerns that Europe's debt problems are prompting a sharp increase in demand for dollar funding.

I think there are still shortages and this is keeping pressure on forex swaps, fixings and interest rate swaps, said a Bangkok-based trader.

The 6-month fixing rate THB6MFIX=TH dropped to 0.90 percent from 1.15 percent. The 3-month rate eased 17 bps to 0.73 percent.

Interest rate swaps also fell across the curve with the one year dropping the most. The one year IRS THBIRS dropped 17 basis points to 1.34 percent.

In India, onshore dollar premiums slid with six-month and one-year premiums falling to two-month lows as concerns about dollar liquidity resurfaced.

Emerging market assets slumped across the board on Thursday after Moody's placed Portugal's credit rating on a three-month review, pointing to a downgrade.

The move pushed up the cost of insuring debt issued by Greece, Portugal and Spain.

In India, the Mumbai interbank forward offered rate (MIFOR) eased to 4.03 percent from 4.13 percent on concerns that dollars could grow scarce if foreign investors start exiting emerging markets.

Longer tenor MIFORs are getting received. It could well be some fear about dollar liquidity but don't really see that in overnight rates yet, says R.K. Gurumurthy, head of treasury at ING Vysya Bank.

However, swap rates rose in New Zealand after central bank Governor Alan Bollard said the bank was looking at interest rate rises in small steps from the middle of the year.

The two-year swaps NZDSM3NB2Y= were up 17 basis points and 10-year swap rates NZDSM3NB2Y= up 7 basis points, leading to a flattening of the yield curve.

Its been a massive day today. We have seen relatively upbeat comments from Bollard and a bit of a whopper in the jobs report, said BNZ senior currency strategist Danica Hampton.

At the momnent markets are poised for a 25 bps hike in July. and expects hiking pressure till the end of the year, she said while adding rates could rise to 4.5 percent by the end of 2010.

Financial markets moved to fully price in a rate hike next month from 72 percent before the data and Bollard's speech, according to a Credit Suisse indicator CSRBNZ=CSAU.

Last week, the central bank held rates at a record low 2.5 percent, but said rates will start rising in coming months. (Additional reporting by Swati Bhat in Mumbai) (Reporting by Umesh Desai; Editing by Kim Coghill)