Aussie Moves to Two-Week High above 1.03 as Spain Bailout Bets Boosts Risk

The Australian dollar climbed to its highest level in two weeks and government bonds fell as speculation Spain is closer to requesting a sovereign bailout spurred appetite for riskier assets.

New Zealand’s currency rebounded from the biggest drop in two weeks after Spain yesterday retained its investment-grade credit rating from Moody’s Investors Service, easing concern that the Europe’s debt crisis will worsen. Demand for the so- called Aussie and kiwi was also supported as Asian stocks joined a global rally amid signs the U.S. economy is gaining momentum.

The Australian currency rose 0.3 percent to $1.0305 as of 2:04 p.m. in Sydney. It earlier touched $1.0324, the strongest since Oct. 2. The Aussie gained 0.1 percent to 81.12 yen. The New Zealand dollar climbed 0.4 percent to 81.73 U.S. cents, after dropping 0.5 percent to 81.41 yesterday. It rose 0.1 percent to 64.32 yen.

via Bloomberg

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