* Dollar up broadly, pulls away from 14-month low vs euro
* Weaker stocks cool risk demand, but dlr gains seen limited
* Riskier FX hit; Swedish crown falls on Riksbank decision
(Adds comment, updates prices; changes byline)
By Jessica Mortimer
LONDON, Oct 22 (Reuters) - The dollar rose broadly on
Thursday, recovering from 14-month lows versus the euro and a
currency basket as weaker corporate earnings and falls in equity
and commodity markets dampened investor appetite for risk.
Commodity-linked currencies such as the Australian, Canadian
and New Zealand dollars fell, coming off recent multi-month
highs versus the U.S. dollar as European shares <> and oil
prices <CLc1> lost more than 1 percent.
Disppointing earnings from eBay Inc <EBAY.O> on Wednesday
were compounded on Thursday by below-forecast results from
Ericsson <ERICb.ST>, cooling some of the recent optimism about
prospects for a global economic recovery.
"Dollar strength fits with lower risk appetite and falling
stock markets," said Johan Javeus, SEB currency strategist in
Stockholm.
"Currencies like the Australian and New Zealand dollars have
had a good run over the last few weeks and this is a good
opportunity to take some profit," he added.
Earlier, the U.S. dollar had also benefited from Chinese
growth data. Although growth accelerated the numbers
disappointed some in the market who had expected even stronger
expansion, prompting selling in higher-yielding currencies.
But the dollar stayed not far from multi-month lows, with
the euro just below the $1.50 level it scaled on Wednesday, and
analysts expect its downtrend to resume on the view that U.S.
interest rates will stay low while the global economy improves.
By 1146 GMT, the dollar had gained 0.4 percent against a
basket of currencies to 75.258 <.DXY>, pulling back from a
14-month low of 74.940 touched the previous day.
The euro <EUR=> was down 0.1 percent on the day at $1.4997,
though it was still within sight of $1.5047 hit on Wednesday,
its strongest since August 2008.
"The euro's proximity to $1.50 suggests that the market is
not taking the current correction as too serious," said Michael
Klawitter, senior currency strategist at Commerzbank in
Frankfurt.
Among riskier currencies, the Australian dollar fell 0.4
percent to $0.9229 <AUD=D4>, the New Zealand dollar <NZD=D4>
lost 0.5 percent to $0.7549 while the U.S. dollar gained 0.6
percent against its Canadian counterpart <CAD=D4> to C$1.0490.
Sterling <GBP=D4> <EURGBP=D4> also fell against the dollar
and the euro, stalling a dramatic rally in the past nine days,
after UK retail sales showed no growth in September, confounding
expectations for a rise. []
RIKSBANK HOLDS RATES
The Swedish crown lost ground after the country's central
bank held interest rates at a record low 0.25 percent and
forecast they would stay near zero for another year
The decision was broadly expected, but analysts said there
was some surprise at its move to pump another 100 billion
Swedish crowns ($14.5 billion) into banks with 11-month
fixed-rate loans. []
SEB's Javeus said one reason behind the crown's fall was
that market participants had speculated that the central bank's
tone could be more optimistic this time round.
"The market had perhaps been taking a small bet that the
Riksbank would deliver a more hawkish tone, saying that things
had improved a bit quicker," he said.
The euro rose 0.4 percent against the Swedish currency to
10.3300 crowns <EURSEK=D4>, though it was off an earlier high
around 10.3750.
Later in the session, U.S. jobless claims data at 1230 GMT
and housing data at 1500 GMT <ECONUS> will be in focus.
(Additional reporting by Naomi Tajitsu, editing by Nigel
Stephenson)
