FOREX-US dollar rallies as equities, commodities drop

* Euro falls below $1.49, worst day since Aug. 7

* Wall Street falls amid speculation on end of tax credit

* Dollar index posts best daily gain since late September

* China should increase euro, yen holdings - report (Updates with tax credit news)

By Wanfeng Zhou

NEW YORK, Oct 26 (Reuters) - The U.S. dollar rose broadly on Monday, rebounding from a 14-month low against the euro as falling stock and commodity prices prompted investors to lock in recent gains in other currencies.

Traders were also reluctant to push the euro higher given the huge amount of bearish trades on the dollar, which suggests a near-term rebound in the U.S. currency could be on the horizon.

On Wall Street, stocks fell sharply as financial shares tumbled on concern lawmakers may let a federal home buyer tax credit expire, while oil prices fell more than 2 percent. For details, see [ID:nN26196363]

"You do have an overall reversal in risk appetite," said Samarjit Shankar, managing director of global FX strategy at BNY Mellon in Boston.