FOREX-US dollar slumps to 15 month low against euro

* Euro breaches $1.51, on track for best day since July

* US dollar falls to 10-month trough vs yen

* U.S. data shows economic recovery gains traction

* Federal Reserve minutes continue to weigh on dollar (Updates prices, adds details, comments)

By Wanfeng Zhou

NEW YORK, Nov 25 (Reuters) - The U.S. dollar fell to a more than 15-month low against a basket of six currencies on Wednesday a day after the Federal Reserve indicated the greenback's decline was orderly and that U.S. interest rates would remain low for some time.

The euro broke above $1.51 and saw its biggest one-day rise in nearly four months, while the yen rallied to a 10-month peak against the dollar. Light trading volumes ahead of the U.S. Thanksgiving holiday on Thursday may have exacerbated currency moves.

Data suggesting stabilization in the U.S. labor and housing markets helped boost U.S. stock prices and risk appetite in general, denting safe-haven demand for the dollar and lifted higher-yielding currencies such as the Australian dollar.

Minutes from the Federal Reserve's last policy meeting released on Tuesday said the dollar's recent drop has been "orderly," although policymakers said any tendency for dollar declines to intensify or to put significant pressure on inflation would "bear close watching." See [ID:nN24313828].

"(Fed officials) are not overly concerned about U.S. dollar weakness and most importantly, they're not going to be changing interest rates anytime soon," said Brian Dolan, chief currency strategist at Forex.com in Bedminster, New Jersey. "It's really a continuation of the sources of dollar weakness that we've had over the last couple of months."

The ICE Futures dollar index <.DXY>, which measures the greenback's performance against a basket of six currencies, fell to 74.227, the lowest level since early August, 2008. It last traded at 74.241, down 1.1 percent on the day.

The euro rose 1.2 percent to $1.5136 after hitting a more than 15-month high at $1.5144, according to Reuters data. At current prices, the euro is on track for its best day since the end of July.

The euro is overvalued against the dollar and too late an exit from euro zone fiscal stimulus could make it even stronger, the International Monetary Fund is likely to say on Tuesday, euro zone sources said. See [ID:nGEE5AO0QR].

RUSSIA DIVERSIFIES

Traders said dollar losses accelerated after Russia's central bank said it would use part of its reserves to purchase Canadian dollars, underlining moves by central banks to diversify out of the U.S. currency. For more, see [ID:nGEE5AO19O]

The dollar fell 1.4 percent to 87.34 yen after falling as low as 87.22 yen, its lowest since January.

"The price action today leaves the door wide open for a Thanksgiving Day raid on the dollar for the remainder of the week with many American investors closing their books today until Monday," said Andrew Wilkinson, senior analyst at Interactive Brokers Group in Greenwich, Connecticut.

U.S. consumer spending and home sales rose more than expected in October, while new claims for jobless benefits fell sharply last week, suggesting the economic recovery was gaining traction. For details, see [ID:nN25346193].

The Australian dollar rallied 1.4 percent to US$0.9318 after bullish comments from Australia's central bank raised speculation of a rate hike next month. [ID:nSYD514867]

The Swiss franc broke parity against the U.S. dollar, which was last down 1.3 percent at 0.9962 franc. Against the Canadian currency, the U.S. dollar fell 1.3 percent to C$1.0452 . (Additional reporting by Gertrude Chavez-Dreyfuss; Editing by ) ((wanfeng.zhou@thomsonreuters.com; +1 646 223 6304; Reuters Messaging: wanfeng.zhou.reuters.com@reuters.net))