* Dollar struggles broadly, approaches 14-mth low vs euro
* Buoyant equities support risk appetite, denting the dlr
* Market watches euro zone ministers' meet for FX comments
(Adds comment, details; changes byline)
By Jessica Mortimer
LONDON, Oct 19 (Reuters) - The dollar fell broadly on
Monday, nearing a 14-month low against the euro, as optimism
about global economic recovery and expectations U.S. interest
rates will stay low kept the U.S. currency under pressure.
European equities rose 1.1 percent <>, reflecting
buoyant investor risk appetite, which helped lift
higher-yielding currencies such as the Australian and New
Zealand close to multi-month highs against the U.S. currency.
The euro hovered just below the psychologically important
$1.50 mark, though analysts said it may face stiff resistance
ahead of that level. Investors were also watching a euro zone
finance ministers' meeting later on Monday for any comments on
the single currency's recent strength.
"The stock market is stronger, and more risk appetite seems
to be driving things," said Peter Frank, currency strategist at
Societe Generale in London.
"We think the euro is on course for $1.50. For the day ahead
there seems to be nothing to stop stocks pushing higher, which
means euro/dollar will be heading up and the dollar will be
heading lower," he said.
Markets awaited third-quarter earnings results from U.S.
companies later in the day, including Apple Inc <AAPL.O> and
Texas Instruments <TXN>, for evidence of U.S. corporate health
and the strength of economic recovery.
By 1131 GMT, the euro <EUR=> traded 0.2 percent higher at
$1.4938, having earlier touched the day's high around $1.4956.
Late last week, the single currency rose to $1.4967, its
strongest since August 2008.
However, traders said there were options barriers around
$1.4975, and intraday expiries around $1.4980.
Against a basket of currencies, the dollar <.DXY> was 0.1
percent lower at 75.513, while the U.S. currency slipped 0.1
percent against the yen to 90.85 yen <JPY=>.
The dollar recovered slightly on Friday from earlier falls
after a large quarterly loss at Bank of America, but analysts
said this had not been sufficient to dull optimism about the
global economy and the risk appetite that has accompanied it.
The Australian dollar <AUD=D4> traded near a 14-month peak,
supported by a Reserve Bank of Australia official who said a
return to normal monetary policy was appropriate
[]. The RBA raised rates to 3.25 percent this
month, the first major central bank to do so.
By contrast, expectations that the U.S Federal Reserve will
keep rates pinned near zero until well into 2010 have kept the
U.S. dollar under pressure.
The Australian dollar rose 0.6 percent to $0.9223 <AUD=D4>,
while its New Zealand counterpart gained 0.8 percent to $0.7468
<NZD=D4>, close to its highest since late July 2008.
STRONG EURO COMMENTS?
The euro has appreciated nearly 7 percent against the dollar
so far this year and on Friday it jumped to 118.82 on a
trade-weighed basis, close to historic highs <EUREER=ECBF>.
This made traders wary of possible remarks on euro strength
at a gathering of euro zone finance officials in Luxembourg
later in the day, although analysts said the group was unlikely
to significantly talk down the euro.
The latest data from the Commodity Futures Trading
Commission showed a fall in net long positions in the euro and
the yen, and decreasing short dollar positions, though analysts
said this will not necessarily prompt a dollar recovery.
"The trend clearly is for a weaker dollar due to a lack of
interest rate support for the U.S. currency, the U.S. budget
deficit and of reserve bank diversification flows into other
currencies, like the euro," said Marcus Hettinger, global
currency strategist at Credit Suisse in Zurich.
(Additional reporting by Naomi Tajitsu in London, editing by
Nigel Stephenson)
