UPDATE 3-Oil eases from 2-yr high, risk appetite to support

                                
 * Dollar near 11-month lows against basket of currencies 
                                
 * Technicals show new $90-$93 range [ID:nSGE6A3032] 
                                
 * Coming Up: U.S. non-farm payrolls for October; 1230 GMT
                                
 
                                
 (Previous Singapore, recast throughout)
                                
 By Ikuko Kurahone
                                
 LONDON, Nov 5 (Reuters) - Oil eased from a two-year high on
Friday, but losses were limited by the new round of U.S.
economic stimulus, which has boosted the appeal of commodities
as an asset class in an environment of a weak dollar.
                                
 U.S. crude futures <CLc1> were down 4 cents at $86.44 a
barrel by 0931 GMT, having touched $87.22 earlier, the highest
intra-day price since October 2008.
                                
 ICE Brent futures <LCOc1> dipped by 20 cents to $87.80.
                                
 Investor appetite for risk is expected to continue grinding
down the low-yielding dollar after the U.S. Federal Reserve's
commitment this week to open-ended purchases of Treasuries
renewed the focus on the dollar.
                                
 "The issue that we have to look at is the financial side and
the injection of money," said Tetsu Emori, a fund manager at
Tokyo-based Astmax Co Ltd.
                                
 The dollar was mired near 11-month lows against a basket of
currencies. [FRX/] <=USD><.DXY> A declining dollar boosts the
appeal of commodities as a way to preserve value.
                                
 Later on Friday, the market focus will shift to a monthly
U.S. jobs report. Employment probably increased in October for
the first time since May, a Reuters survey showed.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^  
                                
For more on the Fed decision, click: [ID:nFEDAHEAD] 
  For a PDF on what comes after the Fed decision:  
                                
http://r.reuters.com/cyh73q 
  FACTBOX on policymaker reaction to Fed: [ID:nN03131287]  
 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
                                
 JP Morgan on Thursday raised its price forecasts for U.S.
crude in 2011 by more than $7 to $89.75 a barrel, while the bank
projects Brent will average $2 higher.
                                
 The price of oil has recovered almost half the ground lost
between a mid-2008 record high and the low at the deepest point
of the recession.
                                
 It was approaching the top of a $70-$90 price range, which
Saudi Arabia's oil minister Ali al-Naimi earlier this week said
was acceptable to both producers and consumers. [ID:nLDE6A10FW]
                                
 But some analysts pointed out oil's fundamentals have not
recovered to the levels seen before the financial crisis in
2008.
                                
 "We continue to believe that QE2 is better played in
equities than in oil futures. Oil prices are already back to the
end-2007 levels (before the financial crisis), but the oil
fundamentals are nowhere near those of 2007," Oivier Jakob in
Petromatrix said.
                                
 Asian shares rose for a fifth day. The FTSEurofirst 300
<.FTEU3>, index of top European shares, touched a six-month high
and then turned down.
                                
 The Reuters-Jefferies CRB index <.CRB>, a global commodities
benchmark, rose above 312 points on Thursday to its highest
since October 2008. 
                                
 Gold, a traditional haven for investors shunning dollars and
hedging against inflation, was above $1,380 an ounce, just below
a record high of above $1,390 an ounce <XAU=>. [COM/WRAP] 
                                
 (Reporting by Alejandro Barbajosa in Singapore and Ikuko
Kurahone in London)