"The rupiah may continue its outperformance the global hunt for yields should drive more inflows into its bond markets which would be a major supportive element for the Indonesian currency," Tan added.
At the close of trade, the Hang Seng index was up 578.62 points, or 2.18%, at 27,147.11, its highest close since Feb. 21. The Hang Seng China Enterprises index rose 2.05% to 10,662.93.
The dollar slumped to multi-year lows against many currencies as traders looked past a new delay in US stimulus checks and maintained bets additional financial aid was still likely.
Few expect betting against the dollar, however, to be a one-way street. Signs that the Fed may tighten monetary policy earlier than expected could also boost the greenback, analysts said.
The Bank of Japan ends its two-day policy meeting on Friday and is expected to leave rates steady but announce an extension of a package of steps aimed at easing corporate funding strains.
In interbank trading, the price of euro appreciated by 15 paisas and closed at Rs. 195.87 against the last day’s trading of Rs. 195.72, State Bank of Pakistan reported.
The US dollar index rose to 90.713 after the Fed's rate-setting committee on Wednesday said its monthly government bond purchase program will continue until the economy substantially improves.
The dollar soon gave back the increase, again hovering near a two-year low. The dollar index was last at 90.2970, down 0.20%.
Among the changes, foreign companies are now allowed to explore for, and produce, oil and gas in China. The restriction on foreign firms seeking to carry out carbon emission assessment in China was also lifted.
Mysteel consultancy's latest survey showed iron ore dispatched from Australia and Brazil fell for the second week over Dec. 7-13 by another 1 million tonnes from the prior week.
The dollar index, which measures the greenback against a basket of currencies, was last at 90.477, after sinking as low as 90.419 on Monday, a level not seen since April 2018.
Meanwhile, according to Forex Association of Pakistan, the buying and selling rates of dollar in the open market were recorded at Rs. 160.2 and Rs. 160.8 respectively.