* Euro trades at fresh 2009 high
* Dollar under pressure as risk appetite increases
(Adds comments, details.)
By Vivianne Rodrigues
NEW YORK, Sept 9 (Reuters) - The dollar fell on Wednesday, extending sharp declines from the previous day, as higher global stocks bolstered risk appetite and pushed the U.S. currency to near a one-year low against a currency basket.
Renewed questions over the dollar's long-term status as the world's reserve currency, investors moving out of dollars into other assets such as gold, and options-related euro buying had fueled broad-based dollar selling on Tuesday.
The dollar was bolstered by a slide in European shares in early European trade. However, their recovery prompted some traders to buy currencies seen as being higher risk -- of which the euro is one -- on dips, prodding the dollar lower. The U.S. stock market opened flat, holding on to its recent gains and keeping up pressure on the dollar.
"The combination of risk seeking U.S. investors diversifying their portfolios and equities rallying further will keep the dollar weak near term," said Geoffrey Yu, a currency strategist at UBS AG.
In morning trading in New York, the euro was 0.6 percent higher at $1.4570
UBS analysts cut forecasts for the dollar, saying in a note that they raised their 1-month euro/dollar forecast to $1.45 from $1.40 and 3-month forecast to $1.35 from $1.30.
Against the yen, the euro
"Risk-loving currencies continue to enjoy widespread support even as doubts linger over the health of the global economy," said Daragh Maher, deputy head of FX strategy at Calyon.
The dollar index <.DXY>, which tracks the performance of the greenback versus a basket of six other major currencies, fell 0.4 percent to 76.96, near a one-year low of 76.892 hit earlier.
Sterling edged higher, holding near two-week highs versus the dollar as markets awaited Thursday's outcome of the Bank of England's two-day policy meeting. The BoE is expected to keep rates unchanged and its asset-buying scheme untouched, although there is some speculation of further easing. [ID:nL7609671]
Due later on Wednesday is the Federal Reserve's Beige book, a summary of economic conditions in 12 Fed districts. Data on Tuesday showed U.S. consumer credit fell by a record $21.6 billion, raising concerns about the pace of recovery.
(Additional reporting by Naomi Tajitsu in London; Editing by Chizu Nomiyama)