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The Australian dollar has continued its rise against the US dollar amid improved commodity prices.

At 0635 AEDT on Thursday, the Australian dollar was worth 77.74 US cents, up from 77.45 US cents on Wednesday.

A rally in commodity prices, led by oil and copper, has propelled the Australian and Canadian dollars to their highest levels in recent weeks.

Meanwhile, the US dollar has slipped to a three-and-a-half-week low against a basket of currencies overnight as traders bet that more major central banks would begin reducing monetary stimulus in 2018 due to faster global economic growth.

In holiday-thinned trading, an index that tracks the greenback against six currencies was down 0.3 per cent at 93.003 after slipping to its lowest since December 1 earlier on Wednesday (US time), Reuters reported.

Traders also have shifted their focus away from the US tax overhaul and to central banks other than the Federal Reserve and whether they will reduce bond purchases and start raising interest rates.

Meanwhile, oil prices have surged to a two-and-a-half-year high due to news of an explosion on a Libyan crude pipeline and voluntary OPEC-led supply cuts. Copper prices on Wednesday rocketed to a three-and-a-half-year peak, Reuters said..

The Aussie dollar is also higher against the yen and the euro.

CURRENCY SNAPSHOT AT 0635 AEDT ON THURSDAY

One Australian dollar buys:

* 77.74 US cents, from 77.45 on Wednesday

* 88.07 Japanese yen, from 87.67 yen

* 65.33 euro cents, from 65.20 euro cents

(*Currency closes taken at 1700 AEDT previous local session)