The Australian dollar rose to its highest level in two weeks against the U.S. dollar and the yen Wednesday after inflation data dented investors’ expectations that Australia’s central bank would cut interest rates before 2015.
The Aussie, as the currency is called, climbed 0.7% against the dollar, to $0.9457, while it gained 0.7% versus the yen to ¥95.99, marking the strongest levels against both since July 10.
Consumer prices in the second quarter rose 0.5% from the first and increased 3.0% from a year earlier, the Australian Bureau of Statistics reported Wednesday. Core inflation, which strips out extraordinary events such as the price effects of extreme weather or new taxes, rose 2.8% from a year earlier, putting it close to the top of the central bank’s 2% to 3% target.
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