Australia’s dollar surged to the highest in two weeks after Federal Reserve Chairman Ben S. Bernanke signaled there would be no immediate reduction in U.S. stimulus that has helped boost asset prices across the world.
The Aussie rose for the third time in four days, set to halt a three-week slide, and government bond yields fell. The Australian economy unexpectedly added workers in June, while the jobless rate rose to the highest in nearly four years. New Zealand’s kiwi dollar touched a three-week high.
“A pretty clear dovish slant from Bernanke is seeing an unwind of dollar longs,” said John Horner, a currency strategist in Sydney at Deutsche Bank AG. “Given that both the Aussie and kiwi have been weighed on heavily by expectations of the Fed tapering its bond purchases, both are benefiting now.”
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