The Australian and New Zealand dollars gained for an 11th day, the longest winning streak since at least July 2007, as a U.S. plan to rid banks of toxic assets boosted speculation the global recession may abate.
The currencies touched the strongest in four months against the yen as Asian stocks extended a global rally, taking the MSCI World Index to a five-week high on U.S. plans to fund purchases of as much as $1 trillion in illiquid real-estate assets. New Zealand’s currency pared gains against the dollar as Finance Minister Bill English said the nation faces “chronic” budget and current-account deficits.
The Obama plan was “given a vote of confidence by the stock market because it contains more details and key private equity players have indicated their willingness to take part,” said Richard Grace, chief currency strategist at the Commonwealth Bank of Australia in Sydney. “That’s a very positive move for the Aussie because it’s positive for global growth.”
Australia’s currency rose 0.3 percent to 70.73 U.S. cents as of 5:20 p.m. in Sydney, near the strongest since Jan. 9, from 70.52 cents late in New York yesterday. The currency advanced 1.6 percent to 69.43 yen, near the highest since November. It touched 51.90 euro cents, the strongest since Feb. 10.
New Zealand’s dollar gained 0.1 percent to 57.21 U.S. cents from 57.17 cents in New York. It bought 56.17 yen, near the most since November, from 55.41 yen.
From Bloomberg News