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 Zealandâ€™s currency rebounded from the biggest drop in two weeks after Spain yesterday retained its investment-grade credit rating from Moodyâ€™s Investors Service, easing concern that the Europeâ€™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.