Australia’s dollar touched the highest level in 4 1/2 years against the yen on speculation Asian Development Bank President Haruhiko Kuroda will be nominated as governor of the Bank of Japan. (8301)
The so-called Aussie extended last week’s gains against the Japanese currency after Kyodo News reported Prime Minister Shinzo Abe is likely to present Kuroda to the Diet within days. Australia’s bonds rose and the local currency declined against the greenback as Italy’s upcoming parliamentary election results curbed demand for riskier assets. Reserve Bank of Australia Assistant Governor Guy Debelle will speak in Adelaide tomorrow.
“Kuroda said in the past that the Bank of Japan still has substantial room for further easing,” said Thomas Averill, managing director in Sydney at Rochford Capital, a currency and interest-rate risk management company. “If Kuroda gets confirmed later this week, then you might even see Aussie-yen break 100.”
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