* U.S. dollar hits 3-yr low, charts point to record low
* Strong U.S. corporate earnings buoy global stocks
* Gold at lifetime high
* Euro zone debt woes limit losses in government bonds
By Emelia Sithole-Matarise
LONDON, April 21 (Reuters) - The U.S. dollar slid to a
three-year low against a basket of major currencies on Thursday,
while global stocks marched higher on a stream of upbeat U.S.
corporate earnings.
Gold surged to a lifetime high for a fifth straight session
on the sharply weaker dollar, with lingering tensions in the
oil-producing Middle East offering additional support.
European stocks rose for a third straight day as investors
flocked back into riskier assets, emboldened by strong U.S.
corporate earnings and signs the global economy was chugging
along even as the U.S. Federal Reserve remains cautious about
when it will start to unwind its super-loose policy.
With little chance of the Fed raising interest rates any
time soon, the dollar index <.DXY> fell about 0.6 percent to
73.873, its lowest level since August 2008. Technical charts
suggested it could move towards a record low of 70.698 hit
earlier that year. []
"Strong earnings reports from a lot of companies have driven
risk appetite and we have seen huge moves in all dollar crosses,
but it would be surprising if we didn't see some profit-taking,"
said Richard Falkenhall, currency strategist at SEB in
Stockholm.
World stocks as measured by MSCI <.MIWD00000PUS> were up 0.6
percent, with European shares rising.
The FTSEurofirst 300 <> index of top European shares
was up 0.3 percent at a one-week high, tracking gains in Asia
and in the United States overnight, where advances were led by
technology stocks after iPod maker Apple <AAPL.O> smashed
earnings forecasts. []
Asian stocks recovered sharply from a stumble earlier in the
week and rose to their highest level since January 2008.
"After a slow start, earnings have improved quite rapidly
and results from companies such as Intel and Apple have
certainly boosted investor sentiment," said Keith Bowman, equity
analyst at Hargreaves Lansdown.
"There is some nervousness in the background, particularly
in relation to the situation in Japan and what that means for
the supply chain, but as of today the markets have concentrated
on good corporate results."
The rally in equity markets cooled demand for safe-haven
government bonds, pushing U.S. and euro zone benchmark German
debt lower, though lingering concerns about the currency bloc's
sovereign debt crisis limited losses.
DOLLAR OUTLOOK GRIM, GOLD AT RECORD
The sharply weakening U.S. dollar has suffered the most
against commodity-linked currencies such as the Australian and
Canadian dollars, as well as emerging markets currencies such as
the Singapore dollar, as some policymakers in Asia allow more
currency strength to fight imported inflation.
Brazil's central bank raised its benchmark interest rate
<BRCBMP=ECI> on Wednesday to 12 percent from 11.75 percent as it
seeks to rein in consumer prices.
Spot gold <XAU=> hit a record high of $1508.50 an ounce and
spot silver <XAG=> soared to a 31-year high while the Australian
dollar powered to peaks above $1.07 -- a level not seen since
the currency became free-floating in the early 1980s.
For the week, the Aussie was up 1.8 percent, making it the
best performer among G10 currencies.
The euro <EUR=> pushed to 15-month peaks but has lagged the
broader move due to resurgent worries about the euro zone
crisis. Although a solid auction of Spanish debt the previous
day helped provide some reassurance, markets remain concerned
that Greece is on the verge of announcing a debt restructuring,
despite repeated denials by Athens.
The weakness in the dollar and a drop in U.S. stockpiles
helped lift Brent crude prices above $124 a barrel, with Reuters
data showing the correlation between a softer greenback and
rising oil prices at its strongest this year.
(Additional reporting by Jessica Mortimer, Atul Prakash and
Vikram Subhedar; Editing by Catherine Evans)
