Monday, July 23, 2007

Australian Dollar Trades at 18-Year High on Speculation of Rate Increase

(Bloomberg) -- The Australian dollar rose to an 18-
year high against the U.S. currency as some traders raised bets
the central bank will increase interest rates next month to slow
inflation. The currency dropped versus New Zealand's dollar.

Australia's dollar is the third-best performer this month
among the 16 most-active currencies as an index calculated by
Credit Suisse Group suggested speculators are increasing the odds
of higher borrowing costs. A report yesterday showed producer
prices gained more than expected in the second quarter and
figures tomorrow may show inflation accelerated.


Read more at Bloomberg Currencies News

No comments: