DOLLAR HITS FOUR-MONTH HIGH ON RATE DECISION

Written on the 8 August 2012

DOLLAR HITS FOUR-MONTH HIGH ON RATE DECISION

THE Australian dollar has soared to a four-month high of $1.06.

The currency jumped after the Reserve Bank of Australia (RBA) yesterday left the base interest-rate unchanged at 3.5 per cent.

Currency traders OzForex confirm the dollar today opened nearly unchanged at $1.055 and expect the currency will move between $1.0510 and $1.0580.

“There appears a general reluctance to take it further, despite the attraction of the higher-yielding asset by foreign central banks that continue to invest in the Australian dollar, as a means of diversifying their currency holdings during times of general uncertainty,” says corporate dealer Michael Judge.

Currency strategists from the Commonwealth Bank of Australia agree the market responded “favourably” to the RBA rates decision, but also doubt the dollar will hit 107 or 108 US cents anytime soon.

The RBA’s assessment of the outlook for inflation remains unchanged for the next two years.

“Inflation remains low with underlying measures near 2 per cent over the year to June and headline consumer price index inflation lower than that. The effects of the price on carbon will start to affect these measures over the next couple of quarters,” says RBA governor Glenn Stevens.


Latest News

BUSINESS CONFIDENCE AT A SIX-YEAR HIGH

SMALL and medium businesses have entered 2017 with their confidence at a six-year high, building on strong gains m...

CRITICS CALL FOR MORE INDEPENDENT DIRECTORS ON BLUE SKY BOARD

BLUE Sky Alternative Investments (ASX: BLA) has defended its governance and valuation processes in response to severa...

BEGA PAYS $460 MILLION FOR VEGEMITE TO BRING THE ICONIC BRAND BACK UNDER AUSTRALIAN OWNERSHIP

VEGEMITE is back under Australian ownership after Bega Cheese (ASX: BGA) agreed to buy Mondelez International's A...

GUVERA ESCAPES WIND-UP ORDER

GUVERA has avoided being wound up after a claim for a $1.78 million debt by Kwong Properties was dismissed at the ...

Related News

BUSINESS CONFIDENCE AT A SIX-YEAR HIGH

SMALL and medium businesses have entered 2017 with their confidence at a six-year high, building on strong gains m...

CONSUMERS PESSIMISTIC ENTERING 2017

CONSUMER confidence remains at its weakest point since April 2016, according to the latest Westpac Melbourne Institut...

RISE OF STARTUP SUPPORT PROGRAMS NOT AS ROSY AT IT SEEMS

ENTREPRENEURIAL cultivation companies in Australia are appearing quickly, but questions have been raised about whe...

SMES TAKE RETAIL MARKET SHARE AS CONSUMERS CHOOSE PERSONALISATION

IN a battle for the hearts and wallets of Australian consumers, it appears that small and medium retail businesses...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter