* Dollar hits 14-mth lows vs AUD, 15-mth lows vs CAD, NZD
* Aussie boosted by RBA Stevens' hawkish comments
* Stronger inflation data pushes the kiwi higher
* Euro climbs to 14-month peak vs dollar
By Satomi Noguchi
TOKYO, Oct 15 (Reuters) - The dollar fell to a 14-month low against a basket of currencies on Thursday as comments by the head of Australia's central bank encouraged investors to buy the higher-yielding Australian dollar, which helped other currencies gain.
The Reserve Bank of Australia 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 Aussie pushed higher to a 14-month peak against the dollar above $0.92, sparking a broad dollar slide that sent the Canadian dollar to a 15-month high and the euro to its highest levels since August 2008.
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 product sales at HSBC in Tokyo.
Asian shares tracked Wall Street higher, adding to investors' appetite for riskier assets. Strong quarterly earnings from JPMorgan Chase helped push the Dow Jones industrial average above 10,000 for the first time in a year.
The greenback was also under pressure after the minutes of the latest Federal Open Market Committee meeting suggested that U.S. 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.
"Australia is ahead of other countries in taking action on an exit strategy, making the Aussie special and easy to be bought in comparison," said Shuichi Kanehira, head of forex spot trading at Mizuho Corporate Bank.
Traders said investors have been increasingly buying the Aussie after the Australian central bank became the first in the Group of 20 to raise interest rates last week as the global financial crisis eases.
The dollar index, a gauge of the greenback's performance against six other major currencies, was down 0.3 percent at 75.295. It earlier dropped as low as 75.251, the lowest since August 2008.
The Aussie rose as high as $0.9218 on the Reuters dealing system, its highest since August 2008, before trading at $0.9215, up 0.6 percent from late New York trade.
The Canadian dollar, another currency seen as linked to commodities, rose to a 15-month high against the dollar of C$1.0208.
The kiwi rose 0.5 percent to touch a 15-month high of $0.7485. The euro rose 0.2 percent to $1.4951 after hitting a 14-month high of $1.4961 on trading platform EBS with traders eyeing the next target at $1.50.
Some traders said the euro's strength was helped by buying by emerging economies' central banks diversifying their foreign reserves, as they have been buying the dollar to prevent their own currencies from rising sharply.
The dollar edged down 0.1 percent against the yen to 89.38 yen after a brief rise earlier, while the euro rose 0.1 percent to 133.68 yen. (Editing by Michael Watson)