* Dollar falls after G20, dollar index falls to 15-mth low
* Risk appetite rises, U.S. rates expected to stay low
* Euro above $1.50 <EUR=>, dollar index below 75.00 <.DXY>
(Adds details, updates prices, quotes)
NEW YORK, Nov 9 (Reuters) - The dollar fell across the
board on Monday, pushing the euro above $1.50, after a weekend
G20 meeting and U.S. jobs data last week did nothing to change
the outlook for low U.S. interest rates.
The conviction that interest rates in the United States --
and elsewhere -- will remain low for the foreseeable future and
liquidity plentiful boosted demand for non-dollar currencies
and other assets ranging from equities to gold.
The dollar index, the dollar valued against a basket of six
currencies, fell to a 15-month low amid the broad malaise
surrounding the safe-haven dollar.
"The U.S. dollar is weaker against most major currencies
after the G20 voiced little concern about the FX market," said
Meg Browne, senior currency strategist at Brown Brothers
Harriman. "That gave a green light to sell the U.S. dollar and
take on risk."
Traders also noted the Group of 20 finance ministers and
central bankers meeting at the weekend did not dwell on
exchange rates, suggesting policymakers were not too concerned
with the dollar's fall, which remains relatively orderly. For
more details, click [].
"Rather than voice concern about the US dollar's weakness,
the G20 expressed concerns that the U.S. dollar could be
over-valued while an IMF report described not only the euro,
but the U.S. dollar as 'on the strong side'," Browne said.
Midway through the New York session, the dollar index was
down 1 percent <.DXY> at 75.052 after going as low as 74.93,
the lowest since August 2008.
The euro <EUR=> was up 1 percent at $1.4997 after going as
high as $1.5020, climbing within sight of last month's 2009
high of $1.5061 based on Reuters data.
"It really is a true expression of how poor dollar
sentiment is right now," said Paul Mackel, senior currency
strategist at HSBC in London. Mackel noted sterling's rise to a
three-month high above $1.68 and even the low-yielding yen's
relatively robust performance against the greenback.
U.S. jobs data on Friday showed the unemployment rate
unexpectedly jumping to 10.2 percent in October, sowing doubts
about the sustainability of the country's economic recovery.
With no major U.S. data scheduled for release on Monday,
investors focused on figures showing surprisingly strong German
industrial and manufacturing output for September <ECON>.
STERLING GAINS
Sterling rose to its highest in three months at $1.6843
<GBP=> before retreating to $1.6718. still up 0.6 percent on
the day.
Data from the Commodity Futures Trading Commission on
Friday showed speculators had substantially decreased their net
short sterling positions to 18,905 contracts in the latest week
from 31,431 contracts in the prior week. []
The dollar was little changed against the yen at 89.91 yen
<JPY=>.
Dealers also cited an International Monetary Fund report as
weighing on the dollar. The report noted while the dollar had
depreciated in recent months, it still remained on the "strong"
side. See http://r.reuters.com/kyp48f.
In other news, the head of the Federal Reserve's St. Louis
branch, James Bullard, told the Financial Times he did not
favor monetary tightening until the recovery was
well-established and suggested rates could stay near zero for
all of next year. []
Investors will be watching to see how U.S. Treasury yields
respond to this week's record quarterly refunding by the
Treasury, while also keeping an eye on a batch of Chinese data
for October due on Wednesday, which will include the consumer
price index, industrial output data and retail sales. <ECONCN>
(Additional reporting by Jamie McGeever in London)
(Reporting by Nick Olivari; Editing by Andrew Hay)
