By Lisa Twaronite, MarketWatch TOKYO (MarketWatch) — The euro gained against the dollar Thursday, after a media report that China and other Asian investors are interested in buying Portuguese bail-out bonds. The Financial Times reported late Wednesday that Asian investors are interested in buying the debt when the European Financial Stability Facility starts auctioning it next month. Asian investors are expected to represent a “strong proportion” of Portuguese bail-out bond buyers, the report said, citing EFSF officials. A separate report in a domestic New Zealand publication said China’s enormous sovereign wealth fund, the China Investment Corporation, may have set aside up to 1.5% of its reserves to buy New Zealand assets, including government bonds, companies and potentially dairy farms. The CIC is also thought to have allocated 2% of its reserves, estimated at well over US$330 billion, to invest in Australia, the report said, citing a “well-placed source.” “While these themes are not new, the explicit references had a profound impact on a short market,” said Sue Trinh, a currency strategist at RBC Capital Markets, in a note to clients. The euro EURUSD +0.60% rose to $1.4158 from $1.4098 in late North American trading Wednesday. See real-time currency quotes and tools. The dollar index DXY -0.51% , which measures the U.S. unit against a basket of six major currencies, slipped to 75.601 from 75.847 late Wednesday. The Australian dollar AUDUSD +0.6556% rose to $1.0588, from $1.0545 late Wednesday, and the New Zealand dollar was up 1.2% at $0.8060. The euro was already on the upswing against the dollar Wednesday, paring earlier session losses, after a clearing house raised its margin requirement on Irish debt. Read more on Irish debt margin hike. Against the Japanese yen, the dollar USDYEN -0.2926% bought ¥81.75, down from ¥82.00 late Wednesday, and the British pound GBPUSD +0.18% rose to $1.6297 from $1.6287.

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