QE in USA & Japan Boosts Demand for Higher Yield, Aussie Profits

The Australian dollar climbed against the US dollar and the Japanese yen today as quantitative easing in the United States and Japan increased attractiveness of currencies with higher yield.

Excessive accommodative monetary policies are prevalent in developed nations, making investors seek profit from riskier assets. The Aussie profited in this situation, surging against its US counterpart. The gain versus the yen was more limited, perhaps because the Japanese currency has already fallen too much. Still, the Australian currency touched the highest since July 2008 against the yen today.

AUD/USD jumped from 1.0410 to 1.0474 as of 14:15 GMT today. AUD/JPY was up from 103.43 to 130.85.

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