The Australian dollar traded 0.4 percent from the highest level in three weeks as speculation the Federal Reserve may signal further stimulus supported demand for riskier assets.
The so-called Aussie and New Zealandâ€™s dollar maintained two days of gains after Germanyâ€™s top constitutional court cleared the way for the ratification of the euro areaâ€™s permanent bailout fund yesterday. New Zealandâ€™s currency, known as the kiwi, was close to a more than four-month high after the Reserve Bank kept its benchmark interest rate unchanged today.
â€œThe markets are seeing a good chance that the Fed will announce QE3 today,â€ Daisaku Ueno, a senior foreign-exchange and fixed-income strategist at Mitsubishi UFJ Morgan Stanley Securities Co. in Tokyo, a unit of Japanâ€™s biggest listed bank, said, referring to a third round of asset purchases known as quantitative easing. â€œThatâ€™s lending support to risk currencies like the Aussie and kiwi.â€
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