FOREX-Dollar slides on G20-fuelled risk appetite, IMF
* Dollar falls broadly after G20, U.S. jobs data
* No rush to withdraw stimulus boosts risk appetite
* Euro eyes $1.50 EUR=, dollar index 75.00 .DXY
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LONDON, Nov 9 (Reuters) - The dollar weakened broadly on Monday after a G20 meeting and U.S. jobs data did little to alter the view that U.S. interest rates will stay low for some time, offering investors little incentive to buy the currency.
Sterling, also aided by position adjustments and talk of merger and acquisition-related demand, hit a three-month high against the greenback, the euro closed in on $1.50 and higher-yielding currencies like the Australian and New Zealand dollars jumped.
The conviction that U.S. -- and other -- interest rates will remain low for the forseeable future and liquidity still plentiful boosted demand not just for non-dollar currencies but for a range of other assets from equities to gold.
"We have positive equity markets so we have risk appetite. And that is still a dollar negative. People are buying into higher yielding currencies or currencies where rates are going higher," said Niels Christiensen at Nordea in Copenhagen.
"It's difficult to pinpoint any reason to hold or buy the dollar. So the dollar is still the preferred funding currency," he said.
Currency traders noted that the Group of 20 finance ministers and central bankers meeting at the weekend did not dwell on exchange rates, suggesting policymakers were not too concerned with the dollar's weakness.
Some dealers also cited an International Monetary Fund report as also weighing on the dollar. The report said that while the dollar had depreciated in recent months, it still remained on the "strong" side. See r.reuters.com/kyp48f.
After a week of central bank meetings, including the Federal Reserve, a gathering of Group of 20 finance officials at the weekend ended without the countries taking any concrete action to rebalance global flows or talk more specifically about the dollar's recent decline [ID:nLQ516726].
"Since dollar weakening can itself facilitate global rebalancing, the failure to discuss currencies implies continued comfort among authorities with recent depreciation," Citigroup currency strategists wrote in a research note on Monday.
At 0830 GMT the dollar index was down 0.8 percent .DXY at 75.23, while the euro EUR= rose 0.8 percent to $1.4970, coming back within sight of last month's 2009 high of $1.5064. Continued...
