Australia’s dollar traded 0.2 percent from its highest level since July as optimism that Syria may avoid U.S. air strikes and gains in global stocks boosted risk appetite.
U.S. President Barack Obama said a Russian proposal for Syria to turn over its chemical weapons to international supervision was a “potentially positive development,” saying that if such plan were to come true, the U.S. would hold off on attacking Syria. Australian bonds fell, sending the benchmark 10-year yield to the highest since March 2012.
“If the possibility of strikes against Syria continues to ease, that’s going to be positive for risk appetite and positive for the Australian dollar and kiwi dollar,” said Janu Chan, an economist at St. George Bank Ltd. in Sydney. “But beyond this week, it would be limited on how much the Aussie could rise from here.”
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