* Dollar falls as risk appetite boosted by higher stocks
* Euro up 0.7 pct at $1.4083 <EUR=>
* Market wary of SNB intervention, Swiss KOF index improves
* China repeats call for super-sovereign currency
(Changes byline, adds quotes, updates prices)
By Farah Master
LONDON, June 26 (Reuters) - The dollar fell against a basket
of currencies on Friday after a series of global liquidity
measures boosted investor sentiment, while higher equities and
commodity prices further pressured the greenback.
Investors shifted back into riskier assets after the U.S.
Federal Reserve indicated on Wednesday it would keep interest
rates low for a while, leaving them unchanged near zero.
European equities gained <>, following rises in Asia
and on Wall Street the previous day.
On Thursday, the Fed extended some of its emergency funding
facilities and its currency swap lines with central banks around
the world to provide ample U.S. dollar funds.
"The dollar is down on the fact we are seeing an increase in
risk appetite once again," said Ian Stannard, senior foreign
exchange strategist at BNP Paribas in London.
"The liquidity operations we have seen globally is
reassuring the markets and investor confidence and we are seeing
the dollar coming under pressure on the back of that."
The European Central Bank on Wednesday offered unlimited
amounts of cash in one-year loans for the first time.
The dollar index, a gauge of the greenback's performance
against six other major currencies, fell 0.7 percent to 79.836
<.DXY>, just shy of a two-week low of 79.562 earlier this week.
By 1100 GMT, the euro rose 0.7 percent to $1.4083 <EUR=>,
heading toward a two-week high of $1.4139 hit earlier this week.
Traders said there were options with a strike price of $1.40 set
to expire later in the day.
European shares were up 0.4 percent by midday trade
<>, while U.S. crude oil futures were up near $71 a barrel
<CLc1>.
SNB WATCH
Traders remained cautious about more currency intervention
by the Swiss National Bank to weaken its domestic currency
against the euro and the dollar to protect the export-driven
economy.
Data on Friday showed Switzerland's leading indicator growth
indicator, the KOF Swiss Economic Institute's economic
barometer, rose to -1.65 in June, beating forecasts of -1.76.
[]
"It is really gratifying that the main indicators have found
their trough like in the rest of Europe," said Alessandro Bee,
economist at Sarasin.
"The central bank will continue its course because there is
still a danger of deflation and even though there is a
turnaround it is at such a low level."
The euro was little changed against the Swiss franc after
the data, holding near 1.53 francs <EURCHF=>. Broad dollar
weakness dragged the U.S. unit down to 1.0857 francs <CHF=>,
down 0.7 percent on the day.
The yen also fell broadly as investors sought
higher-yielding currencies and on expectations for more capital
outflows from Japan.
Comments from China's central bank that it would push for
the international community to reduce its over-reliance on a
small number of reserve currencies also weighed on the yen.
[]
The dollar slipped 0.5 percent against the yen at 134.37 yen
<JPY=>. The euro climbed 0.2 percent to 134.18 yen <EURJPY=R>.
The New Zealand dollar was flat at $0.6449 after falling to
around $0.6410 <NZD=D4> after data showed the New Zealand
economy shrank for the fifth quarter in a row, its longest
recession on record.
(Reporting by Farah Master; Editing by Toby Chopra)
