* US dollar index falls to one-month low
* Euro at two-week high; Canadian dollar hits 1-month peak
* New York state factory activity improves
* Stocks boosted after strong Goldman, Intel earnings
(Updates prices, adds detail)
By Steven C. Johnson
NEW YORK, July 15 (Reuters) - The U.S. dollar fell to a
one-month low against major currencies on Wednesday, as
blockbuster results from Intel and Goldman Sachs boosted
confidence about corporate earnings and the economy.
Data showing factories in New York state had nearly
recovered from the recession in July also lifted spirits,
undermining safe-haven demand for the dollar and pushing
investors into higher-yielding currencies and equities. For
analysts' views on the data see [].
The low-yielding yen struggled while the euro rose along
with European shares <> and brushed off a slight annual
decline in euro zone inflation. Increased risk appetite and a
rise in the price of oil also lifted the Canadian dollar to a
one-month high against its U.S. counterpart.
"Intel's earnings got things kicked off yesterday, and the
U.S. data just improves the outlook, so all lights are flashing
green for investors to take on risk," said Brian Dolan, chief
currency strategist at Forex.com in Bedminster, New Jersey.
The euro <EUR=> was up 0.9 percent at $1.4095, near the
day's high around $1.4113, the highest since July 2. It rose
1.3 percent to 132.40 yen <EURJPY=> while the dollar added 0.4
percent to 93.96 yen <JPY=>.
Sterling rose 0.7 percent to $1.6429 <GBP=D4> while an
index that measures the dollar against six major currencies
slipped 0.9 percent to its lowest level since June 11 <.DXY>.
EARNINGS OPTIMISM, EURO AUCTIONS
Analysts said risk appetite was rising on speculation other
U.S. firms may post solid second-quarter performance after
reports from the two U.S. powerhouse firms exceeded forecasts.
"The market may be expecting more pleasant surprises rather
than unpleasant surprises from earnings," said Steve Barrow,
head of G10 currency research at Standard Bank in London.
The Australian <AUD=> and Canadian dollars <CAD=>, which
tend to do well when investors' taste for risk grows, each rose
about 1 percent against the greenback, with the latter hitting
a one-month high at C$1.1185 per U.S. dollar.
JPMorgan Chase & Co <JPM.N> will announce results Thursday,
followed by Bank of America Corp <BAC.N> and Citigroup Inc
<C.N> on Friday [].
Data from the Bank of New York-Mellon showed the euro was
the most strongly net bought major currency on Wednesday, an
indication of revived risk appetite.
But Antje Praefke, strategist at Commerzbank in Frankfurt,
said euro bond redemptions may limit euro gains. Roughly 60
billion euros of bond redemptions and coupon payments are
scheduled this week, with about 36 billion euros due Wednesday.
"If funds from those redemptions go back into euro assets,
it won't be an issue, but if for example some of it goes back
to Japan, euro-yen may fall," she said.
Elsewhere, data Wednesday showed China's currency reserves
surged to $2.13 trillion last month []. The yuan
hit a two-week closing high <CNY=CFXS> at 6.8316 per dollar on
Wednesday, the highest close since July 2.
(Additional reporting by Tamawa Desai in London; Editing by
Andrea Ricci)
