Nov. 11 (Bloomberg) -- The dollar recovered from a 15-month low against six major U.S. counterparts after U.S. Treasury Secretary Timothy Geithner and World Bank President Robert Zoellick reiterated support for the greenback.

The Australian dollar traded near its strongest level since August 2008 as China, the South Pacific nation’s biggest trading partner, said industrial production and retail sales accelerated in October. The yen gave up gains after Japanese machine orders rose more than forecast.

“The dollar’s weakness is probably in its final phase over the next few months,” said Burkhard Varnholt, chief investment officer of Bank Sarasin & Co., which manages the equivalent of $79.3 billion. “With the dollar being undervalued by 5 percent to 30 percent against other major trading currencies, the dollar does look fundamentally cheap.”

The dollar traded at $1.4984 versus the euro as of 7:32 a.m. in London from $1.4993 in New York yesterday. The greenback was at 89.92 yen from 89.81, after earlier touching 89.29, the weakest since Nov. 2.

Australia’s dollar was 92.92 U.S. cents after earlier touching 93.24 cents, from 93.04 cents in New York yesterday. It reached 93.29 cents on Oct. 21, the strongest level since August 2008.

The Dollar Index, which Intercontinental Exchange Inc. uses to track the greenback against the currencies of six major U.S. trading partners, was little changed at 75.021. The gauge earlier touched 74.889, the lowest level since August 2008.

‘Economic Health’

Treasury Secretary Geithner said a strong dollar is in the nation’s interest and the government recognizes the importance it plays in the global financial system.

“I believe deeply that it’s very important to the United States, to the economic health of the United States, that we maintain a strong dollar,” Geithner told reporters in Tokyo today.

The World Bank’s Zoellick said at a conference in Singapore today the U.S. dollar’s role as the global reserve currency is secure for some time. Asian Development Bank President Haruhiko Kuroda also said in a Bloomberg Television interview that the dollar will continue to be the world’s reserve currency.

Japan’s currency gave up early gains after the Cabinet Office in Tokyo said machine orders, an indicator of business investment in three to six months, rose 10.5 percent in September. The median estimate of 25 economists surveyed by Bloomberg was for a 4.1 percent gain.

New Zealand’s dollar weakened after central bank Governor Alan Bollard today said the “significant” increase in the currency is unlikely to be sustainable.

“The rise in the New Zealand dollar over recent months could hinder continued improvement in the external balance,” Bollard said in a semi-annual report on the nation’s financial system. The currency’s current level “is unlikely to be sustainable,” he said.

The New Zealand dollar dropped to 74.03 U.S. cents from 74.35 cents. It fell earlier to 73.94 cents.

To contact the reporters on this story: Yoshiaki Nohara in Tokyo at ynohara1@bloomberg.net; Ron Harui in Singapore at rharui@bloomberg.net.

Last Updated: November 11, 2009 02:50 EST