TOKYO: Commodity-linked currencies rose against the dollar Thursday as oil prices recovered while sentiment got a boost from a positive open on volatile Chinese stock markets.
"The strong open of the Chinese markets was met with some relief by markets today, with strong gains seen by commodity-related currencies in particular," said Angus Nicholson, a market analyst at IG.
"The Kiwi dollar, Indonesian rupiah and Aussie dollar were the three best-performing currencies in Asia today."
Weak Japanese trade data on Wednesday had aggravated widespread concern over China's economy and a slump in global growth, pushing investors into lower-yielding and less risky currencies including the yen.
On Thursday, the dollar weakened to 119.65 yen from 119.93 yen Wednesday in New York.
The euro traded flat against the greenback on Thursday, as analysts said the ECB looks set to keep its rates steady and refrain from adding stimulus measures when central bank policymakers meet later in the day.
The single currency traded unchanged at $1.1339, while edging down to 135.65 yen from 136.00 yen in New York.
"Market expectations about more QE (quantitative easing) have increased recently," said Carsten Brzeski, an economist with ING DiBa.
"In our view, however, the ECB will refrain from more QE, at least at the current juncture, and will rely on its often-used verbal intervention skills."
In other trading, the rupiah rose 1.37 percent against the dollar, while the Singapore dollar edged up 0.08 percent and the Thai baht gained 0.13 percent.
But the South Korean won dropped 0.66 percent against the dollar, while the Malaysian ringgit traded 0.21 percent lower.
Emerging market currencies have suffered heavy selling over the past year as the US Fed was expected to lift interest rates, with dealers thus shifting to the US looking for higher and safer returns.
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