* EUR/USD hits 1-yr high, strong stocks, commods stir risk
* Yen bounces after BOJ's Shirakawa comments
* Focus on U.S. data; SNB policy decision due at 1200 GMT
(Adds quotes, updates prices)
By Tamawa Desai
LONDON, Sept 17 (Reuters) - The dollar fell broadly on
Thursday, hitting a one-year low against the euro, as equities
and commodities advanced on expectations of economic recovery.
European stocks <> rose half a percent, tracking Asian
equities and Wall Street higher after data on Wednesday showed
U.S. industrial production rose more than expected in August
[], boosting sentiment towards riskier assets and
eroding the dollar's perceived safe-haven appeal.
Many expect the dollar's weakening to continue.
"With risk appetite so strong, the dollar remains under
broad-based pressure and we cannot see anything on the horizon
to alter that today," said Chris Turner, head of FX strategy at
ING.
The euro rose as high as $1.4768 on trading platform EBS,
its highest since mid-September last year. By 1125 GMT, it was
flat on the day at $1.4718 <EUR=>.
The single currency showed limited reaction to figures
showing a higher-than-expected trade surplus in the euro zone
for July, due to a recovery in exports [].
Some in the market say the recent euro rally could encounter
profit-taking, with sell orders seen around $1.4770/80. Traders
also cited options with a strike price around $1.4760 set to
expire later in the day.
The falling dollar pushed gold prices to an 18-month high
and within a stone's throw of its record peak of $1,030.80 an
ounce. That in turn helped boost non-dollar currencies, analysts
said.
BOJ UPGRADE
The yen got a boost after Bank of Japan Governor Masaaki
Shirakawa said a stronger yen would push down prices in the near
term but might support the economy in the longer run.
Speaking after the BOJ held interest rates at 0.1 percent
while upgrading its economic assessment, he added he would
carefully monitor the impact of currency moves and that rates
should be formed in a stable manner in the market. []
The dollar fell as low as around 90.50 yen after his
comments, before pulling back slightly to 91.02 yen <JPY=>, to
trade 0.2 percent higher on the day.
The pair hovered near a seven-month low of 90.12 yen on EBS
on Wednesday. Options with a strike price between 90.30 yen and
91.00 yen were seen expiring later in the day.
Dollar weakness was reflected in the dollar index, which hit
a one-year low of 76.010 before pulling back to 76.246.
The high-yielding Australian and New Zealand dollars
<AUD=D4> <NZD=D4> each hit 13-month highs against the dollar,
while the Canadian currency <CAD=D4> rose to its strongest since
early October.
MORE DOLLAR SELLING?
The market trend is to sell dollars on optimism about the
global economy and over diversification concerns, and analysts
said such selling was likely continue in the near term.
"We had a very whippy market a few weeks ago, but now it
looks like we're heading into trends," said Peter Frank,
currency strategist at Societe Generale in London.
"If the trends get further established, the next signals
will come not from macro data ... but from position switching
and technical levels."
He added that net long positions in the yen were becoming
overstretched, while may soon trigger a correction in the
Japanese currency, while many technical and positioning signs
were pointing to more euro strength.
The Swiss franc <CHF=> hit its highest in more than one year
around 1.0285 to the dollar ahead of a Swiss National Bank
policy announcement at 1200 GMT. The central bank will likely
stick to its ultra-loose monetary policy even as it is set to
raise its growth forecasts.
"Swiss franc bulls may be looking for some support from SNB
2009 growth forecasts, which should be revised higher," ING's
Turner said. "Yet the SNB remains wary of Swiss franc strength,
particularly its impact on exports and the capital goods
sector."
(Additional reporting by Naomi Tajitsu; editing by Patrick
Graham)
