Dollar falls broadly, euro hits year high

LONDON, May 29 (Reuters) - The dollar extended losses against a basket of currencies on Friday, as investors dumped the dollar for perceived riskier assets on the back of expectations the worst of a global recession may be over.

The dollar index fell 1.0 percent to 79.646 .DXY, its lowest since late December.

The euro extended gains, rising one percent to $1.4089 EUR=, its highest in nearly six months.

“The dollar is broadly weaker, particularly against the euro. This is mainly down to month-end fixings by corporates and pension funds,” a London-based trader said.

The trader added that stops were taken out in euro/dollar at $1.4050 which have helped the euro to extend gains. (Reporting by Jessica Mortimer and Tamawa Desai)