Wednesday, October 6, 2010

Aussie hits 2-year high vs U.S. dollar

The Australian dollar hit its highest in more than two years against the U.S. dollar as investors turned towards the high-yielding currency and shunned the dollar on expectations of more U.S. monetary easing.

The Aussie rose as high as $0.9759 AUD=D4, its strongest since late July 2008, leaving it on course for a retest of its 2008 high of $0.9851 as traders shrugged off Tuesday's unexpected Reserve Bank of Australia decision to keep rates unchanged.

"I think people have realised that no matter what, yield differentials are key," an Australian-based trader said.


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