NEW YORK, July 26 Reuters Some investors are zeroing in on the battered currencies of commodityproducing countries such as Norway and Australia to take advantage of more potential weakness in the dollar, which has recently wobbled on signs the Federal Reserve will soon end its ratehiking cycle.

Many commodity currencies suffered this year when prices for oil and other raw materials fell from their 2022 peaks amid expectations that central banks39; fight against inflation would hurt global growth and crimp demand for commodity exports.

However, growth in the U.S. and some other countries has proven resilient and strategists increasingly believe a global economic downturn is unlikely. While that39;s driven rallies in risk assets such as stocks, raw materials prices and some commodity currencies have been slower to respond.

Some investors believe there39;s an opportunity to buy on the cheap. Adding to the allure are expectations that the Fed39;s rate increases which helped lift the dollar to a twodecade high last year are reaching a conclusion.

Commodity currencies are still the currencies that will probably have the most upside potential, purely from a valuation perspective, said Francesco Pesole, FX strategist at ING Bank, who favors the Norwegian crown and the Australian dollar.

The bullish view on commodity currencies gained traction in recent days after leaders in China the worlds leading commodity consumer on Monday pledged to step up policy support for the…