* U.S. data shows economic recovery gains traction
* Federal Reserve minutes continue to weigh on dollar
* Euro/dollar breaches $1.51 to 15-month high
(Updates prices, adds details, changes byline)
By Wanfeng Zhou
NEW YORK, Nov 25 (Reuters) - The dollar dropped to a
15-month low against a basket of currencies on Wednesday as
generally upbeat U.S. economic data and gains in world stocks
eroded the greenback's safe-haven appeal.
The euro broke above $1.51 to hit a 15-month high, while
the yen rallied to a 10-month peak against the dollar. Thin
liquidity a day ahead of the Thanksgiving holiday may have
exacerbated currency moves.
U.S. data pointed to stabilization in the labor, consumer
and housing sectors of the economy, boosting risk appetite and
driving higher-yielding currencies such as the Australian
dollar higher. For details, see [].
Also weighing on the dollar were minutes from the Federal
Reserve's last policy meeting released on Tuesday, which
described the greenback's recent decline as "orderly" and
affirmed expectations U.S. interest rates will remain low well
into 2010.
"Investors scrutinized the Fed's assessment and concluded
that a 'disorderly' decline in the dollar might have further to
run," said Andrew Wilkinson, senior analyst at Interactive
Brokers Group in Greenwich, Connecticut.
"The price action today leaves the door wide open for a
Thanksgiving Day raid on the dollar for the remainder of the
week with many American investors closing their books today
until Monday," he added.
The ICE Futures dollar index <.DXY> ,which measures the
greenback's performance against a basket of six currencies,
fell to 74.273, a 15-month low. It last traded at 74.308, down
1 percent on the day.
The euro <EUR=> rose 1.1 percent to $1.5123 after hitting a
15-month high at $1.5140, according to Reuters data.
The dollar fell 1.4 percent to 87.30 yen <JPY=> after
falling as low as 87.22 yen, its lowest since January.
Traders said dollar losses accelerated after Russia's
central bank said it would use part of its reserves to purchase
Canadian dollars, underlining moves by central banks to
diversify out of the U.S. currency.
U.S. consumer spending and home sales rose more than
expected in October, while new claims for jobless benefits fell
sharply last week, suggesting the economic recovery was gaining
traction.
Kathy Lien, director of currency research at GFT Forex in
New York, said the decline in jobless claims bodes well for the
labor market.
"Jobs are the most important thing, so they're latching on
to the fact that jobless claims were below 500,000, which means
we could see a better non-farm payrolls report going forward,"
she said.
A surprise decline in orders for long-lasting U.S.-made
goods, however, offered a reminder that the recovery would be
gradual. [].
The Australian dollar <AUD=> rallied 1.3 percent to
US$0.9309 after bullish comments from Australia's central bank
raised speculation of a rate hike next month. []
The Swiss franc <CHF=> broke parity against the U.S.
dollar, which was last down 1.2 percent at 0.9965 franc.
(Additional reporting by Gertrude Chavez-Dreyfuss and Steven
C. Johnson; Editing by Leslie Adler)
((wanfeng.zhou@thomsonreuters.com; +1 646 223 6304; Reuters
Messaging: wanfeng.zhou.reuters.com@reuters.net))
