The dollar fell broadly on Thursday, hitting a one-year low against the euro, as equities and commodities advanced on expectations of economic recovery. European stocks .FTEU3 rose half a percent, tracking Asian equities and Wall Street higher after data on Wednesday showed U.S. industrial production rose more than expected in August [ID:nN16118540], boosting sentiment towards riskier assets and eroding the dollar's perceived safe-haven appeal. Many expect the dollar's weakening to continue. "With risk appetite so strong, the dollar remains under broad-based pressure and we cannot see anything on the horizon to alter that today," said Chris Turner, head of FX strategy at ING. The euro rose as high as $1.4768 on trading platform EBS, its highest since mid-September last year. By 1125 GMT, it was flat on the day at $1.4718 EUR=. The single currency showed limited reaction to figures showing a higher-than-expected trade surplus in the euro zone for July, due to a recovery in exports [ID:nLH507786]. Some in the market say the recent euro rally could encounter profit-taking, with sell orders seen around $1.4770/80. Traders also cited options with a strike price around $1.4760 set to expire later in the day. The falling dollar pushed gold prices to an 18-month high and within a stone's throw of its record peak of $1,030.80 an ounce. That in turn helped boost non-dollar currencies, analysts said. BOJ UPGRADE The yen got a boost after Bank of Japan Governor Masaaki Shirakawa said a stronger yen would push down prices in the near term but might support the economy in the longer run.

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