“Australia’s dollar gained against most of its major peers, erasing earlier losses, as advances in metal prices supported demand for the currency of the resource- rich nation.
The so-called Aussie strengthened versus the greenback and the yen amid speculation central banks in other major economies will continue to loosen monetary policy more than the Reserve Bank of Australia. Japan’s Prime Minister Shinzo Abe is likely to nominate Haruhiko Kuroda asBank of Japan (8301) governor, according to two officials with knowledge of the matter. Local bonds rose, sending 10-year yields to a one-month low on concern Italy’s inconclusive election will result in renewed turmoil in Europe.
“Longer term, we expect the underlying fundamentals for the Aussie dollar to be stronger,” said Janu Chan, a Sydney based economist at St. George Bank Ltd. “While we are expecting the RBA to cut once more, interest rates are going to be relatively high. We still have strong demand for Australian government bonds.”
The Australian dollar rose 0.1 percent to $1.0271 at 4:36 p.m. in Sydney from yesterday, when it declined 0.6 percent. It dropped to $1.0222 on Feb. 21, the lowest since Oct. 15. The Aussie gained 0.3 percent to 94.43 yen, rallying from yesterday’s 2.3 percent drop.
New Zealand’s dollar fetched 83.41 U.S. cents, after falling 0.6 percent to 83.35 yesterday. The so-called kiwi climbed 0.3 percent to 76.70 yen, after losing 2.4 percent by the close in New York.
The yield on Australia’s 10-year bonds fell 12 basis points, or 0.12 percentage point, to 3.38 percent, the lowest since Jan. 25…”
If you enjoy the content at iBankCoin, please follow us on Twitter
