The Australian Dollar continued its dominance this week as it rose to its highest level in more than a decade as investors were lured with rising interest rates and also a rise in metal prices. ''The market is saying whether yields go up or not, I like the yields Australia has to offer,'' said Robert Rennie, chief currency strategist at Westpac Banking Corp. in Sydney. ''As long as we're in this situation where markets seek risk, the question is how much further can the Australian dollar go?''
In the London Metal Exchange, Gold reached its highest in a month, assisting the Australian currency with its strength. Traders have also raised speculation that the Reserve Bank of Australia will raise interest rates to a 10-year high by June despite keeping interest rates unchanged yesterday.
In the foreign-exchange, against the U.S. Dollar the Australian currency was worth 81.71 U.S. cents compared to 81.27 U.S. cents in Asian trading yesterday. It reached a high of 82.10 U.S. cents which is its highest since the December 1996 level of 82.14 U.S. cents. Against the Japanese Yen, the Australian Dollar traded at a high of 97.46 Yen which is its highest level against the Yen since 1997 before going down to 96.90 Yen.
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