* Euro climbs 1 pct from 3-month trough against dollar
* Yen rises vs greenback after Kuroda's QE, inflation view
* Dollar index scales back from 3-month peak
* Aussie cenbank sees more currency weakness -minutes (Updates throughout, adds quote)
By Richard Leong
NEW YORK, July 21 (Reuters) - The euro on Tuesday rebounded from three-month lows against the dollar as an easing of pessimism about Greece had traders paring bearish bets, while the yen rose versus the greenback on upbeat remarks on inflation from the Bank of Japan chief.
Commodity-related currencies climbed, partly on a pause in gold's recent selloff.
Despite Tuesday's setback, the dollar is expected to strengthen again in the coming weeks as traders anticipate the U.S. Federal Reserve will raise interest rates by year-end. Fed Chair Janet Yellen and other Fed officials have said higher rates are appropriate later this year if the U.S. economy continues to strengthen. ID:nL1N1000QT
"People were caught leaning too short against euro. It's just some position squaring," said Richard Scalone, co-head of foreign exchange at TJM Brokerage in Chicago.
The euro was on track for its biggest one-day gain in over a week as Greece proceeded to adopt the tough measures required by its lenders to obtain cash and avert bankruptcy. ID:nL5N1010BC
The euro EUR= was up 1.1 percent at $1.0940 in late U.S. trading after retesting a near three-month low of $1.0808 set on Monday. It is down 1.7 percent so far this month.
The greenback weakened 0.3 percent to 123.95 yen JPY= , swinging from a five-week high of 124.48 in the Asian session.
The yen's reversal followed comments from Bank of Japan Governor Haruhiko Kuroda, who said at an event in Bangkok he expected inflation to meet the central bank's 2 percent inflation target and brushed off the notion more quantitative easing is needed. ID:nL3N1014SJ
Strength in the euro and yen pushed down the dollar index .DXY , which fell 0.7 percent to 97.321 after touching a three-month peak at 98.151 earlier Tuesday.
The pullback in the dollar was compounded by a decline in U.S. Treasuries yields US10YT=RR on safe-haven demand for bonds that emerged due to losses in U.S. and European stock prices. US/ MKTS/GLOB
Meanwhile, the gold market stabilized after a steep drop on Monday, helping commodity-linked currencies including the Canadian, New Zealand and Australian dollars.
But minutes from the Reserve Bank of Australia's latest meeting saw more declines in the Aussie dollar, already at a six-year low. ID:nRUALIEB8T
The Aussie dollar gained 0.8 percent to $0.7426 AUD= , while the kiwi jumped 1.2 percent to $0.6635 NZD= .
Spot gold prices XAU= held above a five-year low but worries remained that their fall would resume toward $1,000 an ounce due to sluggish Chinese demand and a possible Fed rate hike that would raise the appeal of the dollar. GOL/