Dol­lar hits record high

Townsville Bulletin - - Investor -

THE Aus­tralian dol­lar was stronger in lo­cal trad­ing as in­vestors favoured do­mes­tic and over­seas risk as­sets due to strong global growth on the hori­zon.

At 5pm yes­ter­day, the Aus­tralian dol­lar was trad­ing at 102.62 US cents, up from Fri­day’s lo­cal close of 102.22 US cents.

The lo­cal unit set a new post-float record high of 103.94 US cents in the early hours of Satur­day morn­ing on off­shore mar­kets, beat­ing the pre­vi­ous high of 102.54 US cents on Jan­uary 1. No­mura Aus t r a l i a c h i e f econ­o­mist Stephen Roberts said the lo­cal unit had been ‘‘ pretty firm over the course o f t he s e s s i o n’ ’ . ‘ ‘ We’re around the up­per end of the r a nge a nd i t ’ s g o ne up against just about ev­ery­thing, in­clud­ing the US dol­lar, Ster­ling and yen,’’ Mr Roberts said.

De­spite the un­rest in the Mid­dle East and de­struc­tion and un­cer­tainty in Ja­pan, there was a view that global growth would pick up as economies r ecov­ered, he said. ‘‘ There’s more con­fi­dence in global growth, go­ing for­ward,’’ he said.

Mr Roberts pre­dicted the lo­cal unit would con­tinue to firm ahead of the re­lease of im­por­tant US non-farm pay­rolls fig­ures on Fri­day.

At 4pm yes­ter­day, the Aus­tralian dol­lar was at 83.91 J a p a n e s e y e n , u p f r o m Fri­day’s close of 82.79 yen, and at 73.02 euro cents, up from 72.12 euro cents.

The euro fin­ished at 1.4054 US dol­lars, down from 1.4174 US dol­lars, and at 114.93 yen, up from 114.79 yen. The US dol­lar was at 81.77 Ja­panese yen, up from 80.99 yen on Fri­day. Aus­tralian bonds closed weaker on Mon­day af­ter fail­ing to wind back ear­lier losses trig­gered by s of t er US Trea­suries on Fri­day night. At 3.30pm yes­ter­day on the ASX 24, the June 10-year bond fu­tures con­tract price was at 94.490 ( im­ply­ing a yield of 5.510 per cent), down from 94.545 ( 5.455 per cent) on Fri­day. The June three-year bond fu­tures c o nt r a c t was t r a d i ng a t 94.910 ( 5.090 per cent), down from 94.980 ( 5.020 per cent).

US eq­ui­ties ral­lied fur­ther on Fri­day night on the back of up­beat earn­ings re­ports, and Aus­tralian bond yields rose in re­sponse. The lo­cal mar­ket could not stage a rally, with no lo­cal eco­nomic data to pro­vide the spark. Al­though the board of the Re­serve Bank of Aus­tralia has its monthly mon­e­tary pol­icy meet­ing sched­uled for Tues­day next week, the mar­ket was not pre­oc­cu­pied with the meet­ing’s out­come, ac­cord­ing to Deutsche Bank.

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