Interest Rate Advantage Boosts Australian Dollar Against Greenback

The New Zealand’s dollar advanced versus its U.S. counterpart for the second straight day as the nation’s interest-rate advantage over the U.S. reached its highest level since 2008 after the central bank raised its benchmark rate on April 6th.

The Reserve Bank of Australia declared that the increase of the benchmark rate on April 6th was the â€œfurther step” to return the interest rates to the average levels. The Australian dollar was also supported by the rising demand for the higher-yielding assets after the concern about the Greece’s debt default lessened. Australia shall keep its yield advantage over other developed nations because of its robust economy and confidence in the nation’s wellbeing may lead to the increasing capital inflows into the Aussie.

AUD/USD rose to 0.9299 as of 7:54 GMT up from the opening rate of 0.9285.

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