* Dollar pressure boosts equities after G20 meeting
* Commodities also benefit from greenback weakness
* September existing-home sales rise more than expected
* Dow up 0.7 pct, S&P up 0.6 pct, Nasdaq up 0.9 pct (Updates to late afternoon, changes byline)
By Chuck Mikolajczak
NEW YORK, Oct 25 (Reuters) - U.S. stocks rose on Monday as a falling dollar and expectations of further monetary easing by the Federal Reserve prompted investors to buy riskier assets.
The slide in the greenback continued after a weekend meeting of the Group of 20 stopped short of setting targets to reduce trade imbalances. Anticipation the Fed will stimulate growth via quantitative easing has weakened the dollar, which in turn has lifted commodity prices.
Freeport-McMoRan Copper and Gold Inc advanced 2.6 percent to $96.06 while oil refiner Holly Corp gained 3.4 percent to $33.35. The S&P materials sector gained 2 percent.
Equities and the dollar have developed an inverse relationship, so as the dollar comes under pressure, equities often rise. Since September, the S&P has risen about 13 percent.
"We have a lower dollar, we have low and benign interest rates, and you can't beat that combination for reflating the economy or stock prices," said Hugh Johnson, chief investment officer of Hugh Johnson Advisors LLC in Albany, New York.
"The real question is not so much are we going to get the effects of the promise of quantitative easing, such as the lower dollar and benign interest rates -- we've got that -- the question is will it work, and the message of the markets is that it will work."
The Dow Jones industrial average gained 75.12 points, or 0.67 percent, to 11,207.68. The Standard & Poor's 500 Index climbed 6.92 points, or 0.58 percent, to 1,190.00. The Nasdaq Composite Index rose 21.00 points, or 0.85 percent, to 2,500.39.
In a research report, Goldman Sachs said the Federal Open Market Committee is almost certain to announce renewed monetary easing at its Nov. 2-3 meeting.
Goldman analysts calculated the Fed may have to buy up to $4 trillion in assets to achieve desired growth and inflation targets.
Further boosting materials stocks was Eastman Chemical Co, which climbed 5.4 percent to $82.87 after it agreed to sell three plants to Mexican conglomerate Alfa for $600 million.
Both Office Depot Inc and tobacco company Lorillard Inc rallied after posting stronger-than-expected profits. Office Depot also said that its embattled chief executive would be stepping down, sending the stock up 7.3 percent to $4.97. Lorillard advanced 1.6 percent to $85.41.
D.R. Horton Inc gained 1.1 percent to $10.73 after data showed existing-home sales rose more than expected in September. (Reporting by Chuck Mikolajczak; Editing by Kenneth Barry)