The Australian dollar rose against a majority of its counterparts amid speculation the central bank will hold interest rates unchanged.
The Aussie gained versus 13 of its 16 most-traded peers before the release of data forecast to show the nation’s trade deficit narrowed. New Zealand’s dollar, nicknamed the kiwi, fell from the highest level versus the greenback since September 2011 as political turmoil in Europe spurred fears the 17-nation euro bloc’s sovereign-debt crisis will worsen, damping risk appetite.
“Australia has close to the highest interest rates in the Group of 10, and in a slow-growth in world, capital will go to Australia,” Richard Franulovich, senior currency strategist at Westpac Banking Corp in New York, said in a radio interview on “Bloomberg Surveillance” with Tom Keene. “The currency is more expensive than fundamentals justify.”
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