By: Barbara Zigah
The Australian Dollar approached a 10-month high versus the Japanese Yen and the U.S. Dollar following the news from the Australian central bank that key interest rates would remain unchanged. Though investors expected the rate to be held steady at the historical low of 3.0%, it confirmed investors’ collective view that a rate hike would be forthcoming toward the end of this year. The RBA representative further commented in their monthly policy meeting that while the health of global economies is stabilizing and associate risks have been mitigated, it is nonetheless appropriate to continue their monetary easing policy.
As reported at 3:24 p.m. (JST) in Tokyo, the Australian Dollar traded at $0.8427 versus the U.S. Dollar, a slight decline from yesterday’s late trading in New York when it traded at $0.8471, the highest trade in nearly 10 months. Versus the Japanese Yen, the Australian Dollar touched on 80.10 Yen, though at one point earlier in the day it had reached as high as 80.80 Yen. The New Zealand Dollar also did well, rising to $0.6712 versus the U.S. Dollar, the highest trade since September 2008.
Conversely, the U.S. Dollar Index remained flat at 77.649 .DXY; yesterday it slipped to 77.451 .DXY, the lowest since late September 2008, as investors’ risk appetite was flamed for higher-risk, higher-yielding currencies and the appeal of the perceived safe-haven status of the greenback was diminished.
Australian Dollar gains after Reserve Bank Policy Meeting
Barbara Zigah
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About Barbara Zigah
After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.