By: Barbara Zigah
The Australian Dollar hit a 1-year peak versus the U.S. Dollar in Tokyo trading today, supported by investors’ who are turning to the higher-yielding currency following continued evidence of the bettering health of the world’s economies. As reported at 1:49 p.m. (JST) in Tokyo, the Australian Dollar hit $0.8757, a 1-year high, in Tokyo trading. It’s “down under” counterpart, the New Zealand Dollar, also rose in Asian trading, trading at $0.7134 versus the U.S. Dollar. The U.S. Dollar remained defensive against other growth-linked currencies, including the Euro, which traded at $1.4729, up .1% and very close to $1.4738, the 1-year high hit on the EBS trading platform yesterday. According to one currency strategist, the upward trend of the Euro may soon see an end; over the past month, the Euro has gained in value more than 2.5%.
Traders are seeing a definitive shift from the U.S. currency, and one forex trader in Japan suggested it may continue to decline for another week at least. The U.S. Dollar Index traded at 76.226 .DXY, very close to a yearlong low of 76.151 .DXY hit yesterday. By all indications, analysts predict it may gradually fall to near 70.70 .DXY, which were 2008 levels.