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FOREX-Dollar rises from 15-month lows in technical rebound

Wed Nov 11, 2009 11:45am EST

* Dollar index hits 15-month low but recovers

Currencies  |  China

* Sterling slides after BoE comments on pound weakness

* Australian dollar hits 15-month high vs U.S. dollar (Recasts, updates prices, adds detail)

NEW YORK, Nov 11 (Reuters) - The dollar rallied from a 15-month low against major currencies on Wednesday in a technical rebound after selling pressure failed to push the U.S. currency through key levels.

Until its recovery, the dollar was down for most of the session, hurt by downbeat views by Federal Reserve officials on the U.S. economy and bullish economic data from China that bolstered risk appetite.

Fed policy makers said on Tuesday any recovery in the U.S. economy would be erratic, bolstering the view that interest rates would stay low and undermine the dollar with no new U.S. data to drive trading. For details, see [ID:nN10315173]

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

"It was a technical failure to break through the old lows on the dollar," said Joseph Trevisani, senior market analyst at FX Solutions in Saddle River, New Jersey. "It's still looking lower but it is going to take a stronger push for the dollar to get through on the downside."

Midway through the New York session, the dollar index was up 0.1 percent at 75.119 .DXY after going as low as 74.774, its lowest since August 2008, despite the gains against the pound.

The euro EUR= was down 0.1 percent at $1.4972, falling from a session high of $1.5048, according to Reuters data. The euro faces key resistance against the dollar around $1.5060, Trevisani said. (Reporting by Nick Olivari; Editing by Leslie Adler)



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