FOREX-Dollar hits 15-month low; sterling tumbles
* Dollar index hits 15-month low, recovers
* Sterling slides after BoE comments on pound weakness
* Australian dollar hits 15-month high vs U.S. dollar (Updates prices; adds details, comment, byline)
By Steven C. Johnson
NEW YORK, Nov 11 (Reuters) -The dollar hit a fresh 15-month low against major currencies on Wednesday on the view that U.S. interest rates will remain low well into next year, though it regained some ground after failing to push through key levels.
Sterling tumbled after the Bank of England governor said pound weakness would help British exporters and aid the economic recovery, while data from China stoked hopes that a global recovery was gaining momentum.
Many worry that the U.S. economy, however, will recovery slowly, and a bevy of Federal Reserve officials have bolstered that view this week, warning the recovery would be erratic and hinting that interest rates would remain low for some time.
Low interest rates make the dollar less attractive to investors than higher-yielding currencies, stocks and commodities.
"We're seeing a minor pullback after stocks didn't sustain new highs," said Brian Dolan, chief strategist at Forex.com in Bedminster, New Jersey. "But oil and gold are still up and the lack of any movement from the Fed will eliminate any interest rate support for the dollar." Continued...
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