The Australian dollar climbed to the highest price in more than in seventh months against the Japanese yen as speculations about an interest rate cut receded, while general mood on the Forex market was supportive for higher-yielding currencies. The Australian currency was down versus the US dollar and the euro.
Glenn Stevens, the Reserve Bank of Australia Governor, suggested in his opening statement to House of Representatives Standing Committee on Economics that policy makers of the central bank are content with the current level of interest rates. Stevens said:
Our most recent assessment was that, with growth near trend, inflation consistent with the target, interest rates about average and an outlook suggesting more of the same, the setting of policy was about right for the moment. Of course, we continue to reassess things each month.
Such statement made investors reduce bets on an interest rate cut, supporting the Aussie.
Markets were in a positive configuration and that translated into gains of stocks. The Standard & Poor’s 500 Index rose 0.3 percent today and the MSCI World Index, tracking stocks of developed nations, added 0.6 percent.
AUD/JPY jumped from 85.72 to 86.63 — the highest price since July 8. At the same time, AUD/USD fell from 1.0715 to 1.0695, following the rise to 1.0755, and EUR/AUD went up from 1.2472 to 1.2572 and reached the highest level since January 4 of 1.2590.
If you have any questions, comments or opinions regarding the Australian Dollar, feel free to post them using the commentary form below.