Investing.com - The dollar rose against the commodity linked currencies on Thursday and trimmed back gains against the yen as Brent oil prices fell to fresh 12-year lows, adding to fears over the outlook for global growth.
The dollar strengthened against the Australian, Canadian and New Zealand dollars as prices for Brent crude, the global benchmark, fell below the $30 per barrel threshold for the first time since 2004, pressured lower by a global supply glut and fears of a slowdown in China.
Market sentiment was also hit by reports of a series of deadly bomb blasts in the Indonesian capital, Jakarta.
AUD/USD skidded 0.52% to 0.6920, the lowest level since September 7, while NZD/USD fell 0.76% to two-month lows of 0.6465.
The greenback rose 0.32% to 1.4387 against the Canadian dollar, the highest level since 2003.
The yen moved higher against the greenback, with USD/JPY last at 117.63, off earlier highs of 118.18.
The low yielding euro rose against the dollar, with EUR/USD up 0.52% to 1.0953.
Investors were closely watching movements in China's yuan after a turbulent start to the year in Chinese markets stoked fears over a deepening economic slowdown.
China's central bank set a firmer mid-point rate for the yuan on Thursday, easing fears over a sustained depreciation of the currency.
Meanwhile, the pound remained close to five-and-a-half year lows, with GBP/USD at 1.4418 amid expectations that the Bank of England would flag another delay in raising interest rates after its policy meeting later in the day.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, slid 0.14% to 98.77.