Monday, July 16, 2007

Australia's Dollar Snaps Four-Day Advance, Retreats From an 18-Year High

(Bloomberg) -- The Australian dollar snapped a four-
day rally to an 18-year high on speculation traders betting the
central bank will raise interest rates again won't add to
holdings.

The currency has surged 4.2 percent in the past month as
interest-rate futures show speculators have fully priced in
expectations the Reserve Bank of Australia will boost borrowing
costs by year-end. It slid the most in almost three weeks today.
Figures released July 13 by the Washington-based Commodity
Futures Trading Commission showed traders had increased bets on
the currency advancing.


Read more at Bloomberg Currencies News

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