The Australian Dollar hits a 2 month high as the nations commodity prices climbed on further speculation that lower U.S. interest rates will help raise global economic growth. The Australian Dollar also rose to a 5-week high against the Japanese Yen as the Westpac Banking Corp Index on Australian commodity prices rose to a record high. ''There's no reason why the Australian dollar can't trundle on higher,'' said Paul Milton, chief dealer at Societe Generale SA in Sydney. ''Higher commodity prices and the weaker U.S. dollar are lending the currency support.'' The Westpac Commodity Futures Index, an export weighted average of exchange-traded commodity futures prices, increased for its second consecutive week to a record 281.07 today. Gold futures for December delivery managed to reach a 27-year high of $746.50 on the Comex division of the New York Mercantile Exchange yesterday.
In the foreign exchange on Friday, the Australian Dollar rose to a high of 87.04 U.S. cents before trading at 86.65 U.S. cents. The Australian Dollar gained 2.9 percent in this week and may overcome July 18's high of 88.71 U.S. cents next month. The Australian Dollar also traded at 100.15 Japanese Yen before trading at 99.54 Yen. Commodity prices are a great influence on the level of the Australian Dollar, as exports of commodities such as gold, iron ore and nickel make up 14 percent of the Australian economy.
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