* Dollar hits fresh 2009 low vs basket of currencies, euro
* Earlier dlr recovery short-lived as US stock futures rise
* Mkt stays optimistic on global econ; weak EZ data ignored
* Aussie hits 8-mth high vs dollar, sterling at 7-mth peak
(Adds quotes, updates prices, changes byline)
By Jessica Mortimer
LONDON, June 2 (Reuters) - The dollar fell to its lowest
level this year against the euro and a basket of currencies on
Tuesday, reversing earlier gains due to the ongoing belief that
the global economy is on the road to recovery.
The U.S. currency had begun the day staging a modest
recovery after Monday's steep falls, but this soon petered out
as U.S. stock futures <SPc1><DJc1> turned higher, helping to
renew the recent rally in higher risk currencies.
Sterling hit a fresh seven-month high versus the greenback,
while the Australian dollar rose to a fresh eight-month peak to
extend the previous day's gains.
Analysts said the dollar's failure to recover shows
investors are convinced by the view the global economy is over
the worst, which is encouraging them to buy higher risk
currencies and assets.
"I think what we're seeing is just another indication of the
sentiment out there in the market," Standard Bank head of G10
currency research Steve Barrow said.
"Any bouts of weakness in any currencies against the dollar
are proving very short-lived," he added.
The dollar index fell to a low of 78.524 <.DXY>, its weakest
since mid-December. The euro meanwhile hit a 2009 high of around
$1.4281 <EUR=>.
The Australian dollar jumped around 0.9 percent to touch a
fresh 8-month high of $0.8186 <AUD=D4>, having earlier fallen as
low as $0.8050, while sterling hit a seven-month high of $1.6502
<GBP=D4>.
The New Zealand dollar, another higher-risk currency, also
touched an eight-month high against its U.S. counterpart of
$0.6568 <NZD=D4>
Sterling had come under pressure earlier in the day,
pressured by news an Abu Dhabi government-owned firm sold its
shares in major UK bank Barclays <BARC.L>.
The Australian dollar had also slipped earlier after the
Reserve Bank of Australia held interest rates at a record low of
3 percent on Tuesday, but said there was scope to ease further
if needed.
But investors soon bought back into the global economic
recovery story as they continued to draw optimism from Monday's
stronger-than-expected manufacturing activity surveys out of
China, the euro zone, the UK and the U.S.
They shrugged off Tuesday's news that euro zone unemployment
rose to 9.2 percent in April, the highest since September 1999.
[]
Analysts noted the dollar's recent fall has coincided with
money shifting out of U.S. Treasuries and into emerging markets
equities and other assets.
"It is not so much a flight from the dollar as it seems, but
an expressed preference for assets with greater
yield-enhancement potential," said Neil Mellor, currency
strategist at Bank of New York Mellon.
In other news on Tuesday, U.S. Treasury Secretary Timothy
Geithner continued to reaffirm his faith in a strong U.S.
currency.
He sought to reassure China over its huge holdings of U.S.
Treasury debt because Washington is committed to keeping the
dollar strong and inflation low and stable. See [].
