TOKYO, Oct 15 (Reuters) - The dollar fell to a 14-month low against the Australian dollar on Thursday as comments from the head of the Reserve Bank of Australia encouraged investors to buy the higher-yielding currency, which helped other growth-linked currencies gain.
Australia's central bank chief said local interest rates would need to move towards a more normal setting as economic recovery took hold, reinforcing the view that the country is heading for a second straight rate hike in November.
The dollar hit a fresh 14-month low against the euro after strong quarterly earnings from JPMorgan Chase helped push the Dow Jones industrial average above 10,000 for the first time in a year, boosting investor appetite for riskier assets.
The New Zealand dollar jumped to a 15-month high versus the U.S. dollar after stronger-than-expected inflation numbers raised expectations of a near-term interest rate hike.
"The dollar's slide comes in good market conditions with stocks rising. So there is no fear involved," said Kosuke Hanao, head of treasury products sales at HSBC in Tokyo.
RBA Governor Glenn Stevens' remarks helped the Aussie to push up against the dollar to as high as $0.9189, the highest since August 2008. The Canadian dollar, another currency seen as linked to commodities, rose to a 15-month high against the dollar of C$1.0217.
The kiwi also rose 0.2 percent to touch a 15-month high of $0.7458.
The euro hit a 14-month high of $1.4952 on trading platform EBS.
The dollar index, a gauge of the greenback's performance against six other major currencies, fell to a 14-month low of 75.317.
The greenback was also under pressure after the minutes of the latest Federal Open Market Committee meeting indicated that US interest rates are likely to remain low for some time.
The prospect of low U.S. interest rates would encourage investors to sell the dollar for other higher-yielding currencies in carry trades, especially if other central banks start lifting interest rates as their growth picks up.
Meanwhile, the dollar rose against the yen to 89.65 yen.
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