FOREX-Dollar hits 15-mth low, sterling falls on BoE

Wed Nov 11, 2009 12:45pm GMT
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* Dollar index hits 15-mth low, stung by U.S. rate view

* Sterling slides after BoE comments on pound weakness

* Australian dollar hits 15-mth high vs U.S. dollar

(Updates prices)

By Naomi Tajitsu

LONDON, Nov 11 (Reuters) - The dollar extended its recent decline to a 15-month low against the major currencies on Wednesday, hurt by a mixture of downbeat official views on its home economy and bullish signs for Asia and risk appetite.

Federal Reserve officials on Tuesday [ID:nN10315173] said any recovery in the U.S. economy would be erratic, bolstering the view that interest rates would stay low and undermining the dollar from the start of European trading.

Sterling fell broadly, stung after Bank of England Governor Mervyn King said weakness in the currency would help UK exporters and aid Britain's recovery from recession.

Despite its gains versus the pound, the dollar index hit 74.774, its lowest since August 2008, also hurt by strong Chinese economic data that boosted shares and spurred investors' appetite for risk -- generally a negative trend for the dollar.  Continued...

 
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