BLOOMBERG: The Australian dollar rose to its highest in almost 24 years on speculation the nation's interest- rate advantage over the U.S. will widen.
The currency, know[n] as the Aussie, extended its six-day gain as Federal Reserve Chairman Ben S. Bernanke signaled the U.S. central bank is prepared to lower its 3 percent interest rate to shore up a faltering economy. Australia's dollar was buoyed as investors bought the nation's higher-yielding assets in anticipation of the central bank raising its 7 percent benchmark rate again next week to slow inflation.
“It's clearly a one-way street higher for the Aussie," said Clifford Bennett, chief economist in Sydney at Sonray Capital Markets Ltd. Bernanke's comments are "the latest catalyst points overlaying what is still a very strong investment argument for the Australian dollar, consisting of high yields likely to go higher."
The Australian dollar touched 94.34 U.S. cents, the most since March 1984, before trading at 94.11 cents at 9:19 a.m. in Sydney, from 93.81 cents in late Asian trading yesterday. The currency also climbed to its highest since August 1997 against the pound, reaching 47.59 pence. Australian Dollar Rises to Highest Since 1984 on Rate Advantage >>> By Chris Young | February 28
Mark Alexander (Paperback)
Mark Alexander (Hardback)
