TOKYO, Japan -- The euro extended its gains against the dollar and the yen in Asia Thursday on speculation that euro zone interest rate cuts are unlikely in the near future, dealers said.

The euro rose to $1.4783 in Tokyo morning trade from $1.4737 in New York late Wednesday, and to 161.84 yen from 161.32. The dollar softened to 109.48 yen against 109.65.

The euro was buoyed by comments from European Central Bank (ECB) policymaker Axel Weber, who indicated the bank was unlikely to lower interest rates any time soon, said Sumitomo Trust Bank chief forex strategist Saburo Matsumoto.

Up to now, markets have been expecting rate cuts from the ECB and hikes from the US Federal Reserve to narrow the rate differential in the two regions.

The dollar was pressured by a fresh rise in oil prices on concerns that tropical storm Gustav could hit oil and gas installations in the Gulf of Mexico, dealers said.

Market players were looking ahead to another batch of US economic indicators, including second-quarter economic growth and a home price survey due out later in the day.

Dealers said the greenback could get a boost from the snapshot of economic second-quarter growth amid hopes it would be revised upwards from an earlier estimate of 1.9 percent.

But the market impact was unlikely to be huge as the growth figures were considered a lagging indicator, they added.

"The dollar is not making headway, and will be unlikely to break above the 110-yen level," Matsumoto said.

Meanwhile, a report by the Japanese Nikkei business daily that the US, European and Japanese authorities drew up an emergency plan in March to rescue the plunging dollar brought some relief to markets, dealers said.

In the event no joint intervention took place.

But the report "suggests a more stable dollar in the long run, which should help keep overall foreign exchange market volatility low" and encourage risk appetite, a Tokyo trader told Dow Jones Newswires.