The Australian dollar reached the highest level versus its U.S. counterpart today after the national central bank Governor affirmed that the current crisis in the country may not be as serious as considered previously.
The Reserve Bank of Australia Governor Glenn Stevens stated today that the current crisis which the country is going through may not be the worse after the World War II, as so often stressed by analysts. This declaration helped the Australian currency to climb to the highest level versus the greenback as several other factors propelled the Aussie to peak at the current level. Interbank futures indicated a significant chance that interest rates will be raised in Australia by the end of the year, helping the Aussie to climb versus most of the 16 most traded currencies. If confirmed, Australia would be the first country among the G-20 nation to raise its benchmark interest rates this year.
Analysts consider strongly positive for the Aussie the speculations regarding the national borrowing costs, and that today’s climb for the Australian national currency can be linked not only to the current optimism in the South Pacific region, but also with a negative outlook of some currencies like the low-yielding U.S. dollar and yen, and the currently problematic Great Britain pound.
AUD/USD climbed to 0.8354 from 0.81840 as of 11:41 GMT. AUD/JPY followed, reaching 78.814 from 77.930.
If you have any questions, comments or opinions regarding the Australian Dollar,
feel free to post them using the commentary form below.
Be First to Comment