LONDON: The dollar languished close to its 2009 low against the euro on Wednesday, weighed down by increased risk taking and speculation about its future role in global trade, analysts said.

Dollar weakness kept the price of gold near 1,000 dollars an ounce.

In late morning trade here, the European single currency climbed to 1.4497 dollars from 1.4480 dollars in New York late on Tuesday. Earlier Tuesday, the euro had reached 1.4535 dollars, the highest level since December 18.

On Wednesday, the dollar rose to 92.53 yen from 92.31 yen on Tuesday.

"Improved sentiment towards global economic growth and better investor risk-appetite... reduced 'safe haven' demand for the dollar," said NAB Capital strategist John Kyriakopoulos.

The weaker dollar lifted gold prices to 1,007.70 dollars an ounce on Tuesday -- the highest level for 18 months -- partly because the precious metal became more affordable but also owing to dwindling confidence in the greenback, dealers said.

Another negative factor for the dollar was a report released this week by the UN Conference on Trade and Development calling for a reduction in the dollar's role as the primary currency for global trade -- the first such proposal by a major international institution.

Market watchers say the tide may be turning against the dollar, which was seen as a safe haven during a financial crisis that escalated almost a year ago with the collapse of Wall Street banking giant Lehman Brothers.

"Short-term players such as hedge funds have been decreasing their dollar holdings recently. The dollar may weaken across the board further if longer-term players join the bandwagon," Mitsuru Sahara, a senior dealer at Bank of Tokyo-Mitsubishi UFJ, told Dow Jones Newswires.

The dollar is also being depressed by speculation that the US Federal Reserve may be slower than some other major central banks to raise its key interest rate from the current level of virtually zero.

Investors were waiting for the Fed's Beige Book survey of economic conditions in the United States to be released on Wednesday for fresh leads on the outlook for the US economy and monetary policy.

In London on Wednesday, the euro was changing hands at 1.4497 dollars against 1.4480 dollars late on Tuesday, at 134.03 yen (133.67), 0.8784 pounds (0.8779) and 1.5175 Swiss francs (1.5164).

The dollar stood at 92.53 yen (92.31) and 1.0476 Swiss francs (1.0470).

The pound was at 1.6491 dollars (1.6489).

On the London Bullion Market, the price of gold fell to 996.95 dollars an ounce from 1,000.75 dollars an ounce late on Tuesday.