* Dollar gains, knocking gold
* World stocks down three-quarters of a percent
* Wall Street set for poor start
* Capital control worries after Brazil move
By Jeremy Gaunt, European Investment Correspondent
LONDON, Nov 19 (Reuters) - The dollar pushed further away
from 15-month lows on Thursday, forcing gold prices lower while
global equities fell from the top of their recent range and Wall
Street looked set to open lower.
The risk correlation between assets -- where the dollar
falls when investors buy riskier assets and vice versa --
remained in place.
Investors are generally gripped by uncertainty over the
global economy's future and a tendency to lock in some profits
before year end.
Some emerging market currencies fell, however, as investors
worried about the introduction of capital controls to stem
speculative flows, following a new move by Brazil.
On currency markets, traders were generally taking profits
from recent bets on higher-yielding currencies.
The ultra low-yielding dollar and yen climbed with the
biggest losers being the likes of the New Zealand and Australian
dollars and the major European currencies.
The euro fell more than 1 percent against the yen at 132.07
yen <EURJPY=> and was down 0.8 percent on the day against the
dollar at $1.4856 <EUR=>.
The dollar index, which tracks the currency against major
currencies, was up 0.4 percent <.DXY>.
"Until such time as the U.S. and Chinese authorities signal
meaningful changes to their respective economic and currency
policies ... we suspect that there will be little basis for any
lasting recovery for the USD," Bank of New York Mellon said in a
note.
"However, with the year-end fast approaching and with many
currency pairs and equity indices in close proximity to some key
levels, there can be no discounting a short-term correction."
In emerging markets, the Indonesian rupiah and the Indian
rupee fell on concerns over official steps to curb capital
flows.
Brazil took another step on Wednesday to try to contain the
appreciation of its currency, unveiling a 1.5 percent tax on
certain trades involving American Depositary Receipts issued by
Brazilian companies. []
The relative strength of the dollar knocked gold below its
record of $1,150 an ounce, reached on Wednesday. But it was
still strong at $1,135.
"Gold is holding onto gains incredibly well considering the
lack of support from the dollar overnight. Momentum in gold is
phenomenal at the moment," said a trader.
WEAKER STOCKS
World stocks dipped three quarters of a percent as measured
by MSCI <.MIWD00000PUS>. They hit a year high on Monday, since
when they have fallen more than 1 percent.
European shares were lower for the third consecutive
session, with food producers leading the losers after Danone
<DANO.PA> cut its sales growth target.
The pan-European FTSEurofirst 300 <> index of top
shares was down three quarters of a percent.
"I get the impression now there are an awful lot of people
beginning to close their books and start minimizing risk before
the holiday period," said Justin Urquhart Stewart, director at
Seven Investment Management.
"Volumes are coming down, that may mean if we get any
serious news, we could get a bit of volatility coming through."
Japan's Nikkei <> lost 1.3 percent.
Euro zone government 10-year bond yields were flat.
(Additional reporting by Joanne Frearson; Editing by Ron
Askew)
