* Dollar index erases losses, up 0.1 pct at 75.643 <.DXY>
* Goldman Sachs results help dollar reclaim some losses
* Dollar hit 14-month low vs forex basket
* Dovish U.S. FOMC minutes weigh on dollar
By Catherine Bosley
LONDON, Oct 15 (Reuters) - The dollar recovered from
14-month lows on Thursday as stocks fell after more U.S. bank
earnings, but the greenback remained pressured on expectations
U.S. interest rates would remain low.
Goldman Sachs Group Inc <GS.N> posted better-than-expected
quarterly results, with third quarter earnings per share of
$5.25 versus forecasts of $4.24. []
But European stocks pared gains as the results were weaker
than some in the market had hoped.
"(Goldman has) taken U.S. stock futures lower and at the
moment provided a little of respite from the plethora of
dollar-selling interest," said Jeremy Stretch, currency
strategist at Rabobank.
"It's still the case that everything's about stocks, and
stocks expectations and risk appetite. Goldman's failing to beat
what were very, very lofty expectations has taken us back
somewhat in euro/dollar in the short term."
U.S. stock index futures <SPc1> fell further after Citigroup
Inc <C.N> reported a quarterly shareholder loss, but the results
did not greatly affect the foreign exchange market.
The dollar index, which tracks the performance of the
greenback versus a basket of six other major currencies, was up
0.12 percent at 75.643, after hitting a session high of 75.765.
It had fallen to a 14-month low of 75.211 <.DXY> earlier.
EURO HITS 14-MONTH HIGH THEN SLIDES
The euro hit a day's low after European Central Bank
President Jean-Claude Trichet repeated the euro was not created
to be a global reserve currency.
The euro <EUR=> fell as low as $1.4844 according to Reuters
data, down 0.4 percent on the day and retreating from a 14-month
high hit in earlier trade.
Sterling pared some gains but was still broadly higher on
the day, prompted by short-covering after investors had boosted
short sterling positions that helped push the pound to a
five-month low earlier this week, traders said.
Bank of England policymaker Paul Fisher told the Financial
Times he felt more confident the central bank's asset purchase
programme was working. []
But analysts said they expected further dollar weakness
after the latest minutes from the U.S. Federal Reserve Open
Market Committee, showed that some policymakers called for
increasing asset purchases. []
"There's obviously very low interest rates in the States and
there's no sign they're going any time soon, listening to the
Fed and their minutes last night," said Chris Turner, head of
foreign exchange strategy at ING in London.
"Today's very modes correction from new lows is nothing
serious for the dollar bear trend."
Simon Derrick of Bank of New York Mellon said reports of
Asian central banks intervening to keep their currencies from
appreciating had not lifted the dollar, because the market
anticipated some of the dollars would be converted into euros.
Hong Kong's central bank sold HK$1.5 billion ($200 million)
to keep the Hong Kong dollar within its trading band.
[]
The greenback earlier fell to 14-month lows against the
higher-yielding Australian dollar and a 15-month trough versus
the New Zealand and Canada dollars.
Reserve Bank of Australia chief Glenn Stevens said local
interest rates would need to move towards a more normal setting
as economic recovery took hold, reinforcing the view rates would
be hiked for a second consecutive month in November.
[]
(Additional reporting by Tamawa Desai; Editing by Mike
Peacock)
