Australia’s dollar rose against most of its major counterparts after the nation’s central bank refrained from cutting its benchmark interest rate.
The currency, nicknamed the Aussie, rebounded from an eight-month low against its U.S. counterpart after Reserve Bank of Australia Governor Glenn Stevens said in a statement today that “there will be more scope for some other areas of demand to strengthen” as resource investment peaks, and that previous rate cuts “are having some of the expected effects.” New Zealand’s currency advanced versus the greenback as gains in Asian stocks boosted demand for higher-yielding assets.
“The RBA was a little bit more upbeat on the outlook for capital expenditure and it continued to say that past easing is having an impact on the economy,” said Khoon Goh, a Singapore- based foreign-exchange strategist at Australia & New Zealand Banking Group Ltd. “The market has taken Stevens’ comments on resources spending positively and that’s why we’ve seen the Aussie move higher.”
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