* Euro turns higher, boosted by stocks, commodities
* U.S. GDP data on soft side, briefly weighs on dollar/yen
* G20 meeting unlikely to yield surprises (Updates prices)
By Gertrude Chavez-Dreyfuss
NEW YORK, June 25 (Reuters) - The U.S. dollar fell against the euro and commodity-linked currencies such as the Australian dollar on Friday as investors felt more comfortable buying riskier assets after stocks came off lows and commodities jumped sharply,
U.S. stocks staged a comeback in the afternoon, while oil prices shot higher, fueling risk appetite and prompting buying in the euro and the Australian, Canadian and New Zealand dollars. These last four currencies have become symbols of risk appetite in the developed world, moving in tandem with U.S. stocks.
"There's some tentative risk appetite in the market as we see stocks rallying and commodities up sharply," said Dean Popplewell, chief currency strategist at OANDA in Toronto.
"Fundamentally, there is no reason for the euro to rise given the euro zone debt crisis."
Funding issues in the euro zone are still an issue, as banks need to repay some 442 billion euros in one-year loans to the European Central Bank next week.
In late trading, the euro rose 0.5 percent against the dollar to $1.2387 EUR=EBS. Despite the euro's gains, however, the euro zone single currency was still down 0.4 percent on the week but up 0.7 percent for the month of June so far.
The dollar, however, fell 0.3 percent against the yen to 89.24 after sliding to a fresh one-month low at 89.21 JPY=EBS, according to electronic trading platform EBS. It was the dollar's fourth straight daily drop against the yen and, at 1.3 percent for the week, the third straight week of declines.
Dollar losses versus the Japanese currency were partly triggered by data which showed U.S. gross domestic product growth was slower than previously expected in the first quarter. For more see [ID:nN25111163].
"A bit of a disappointment with this (GDP) report," said Matthew Strauss, senior currency strategist at RBC Capital Markets in Toronto. "It's on the softer side of expectations and with the recent slew of soft data from the U.S., it actually supports this week's FOMC cautious statement."
The Australian dollar rose 1.0 percent versus the greenback AUD=D4 to US$0.8743 while the New Zealand currency also gained 0.8 percent to US$0.7137 NZD=D4. The Canadian dollar was also up, pushing the U.S. dollar down 0.7 percent to C$1.0360 CAD=D3.
Meanwhile, traders said a weekend meeting of the Group of 20 rich and developing nations is unlikely to produce any surprises.
Analysts say currency issues were unlikely to come to the fore as China took steps last week to de-peg its currency.
"On the G20, I don't expect too much, because the big announcement already happened last week with China saying it would let its currency strengthen a bit," said John Doyle, senior currency strategist at Tempus Consulting in Washington. (Additional reporting by Nick Olivari, Vivian Rodrigues, and Steven C. Johnson; Editing by Andrew Hay)