There was a change in fortunes for the dollar in Thursday trading as it reversed losses suffered the previous day.

Against the yen, the greenback was boosted by a two per cent increase in day-to-day value, reaching 116.14 yen.

The euro also dropped against the dollar, falling to 1.3637 from around 1.3672 at the close of Wednesday's New York trading.

However, analysts are not convinced that the dollar's seeming rise in fortunes will continue steadily.

Boris Schlossberg, senior currency strategist for, dismissed the reversal of fortunes as "a dead-cat bounce".

"Risk aversion is by no means over as a story in the markets, and this is just a calm before the second wave of the storm hits," he explained.

On Wednesday, a leaked letter from Federal Reserve chairman Ben Bernanke hinted that the body is considering slashing key rates to fight inflation.