The Australian Dollar strengthened in forex trading as the yield advantage that the nation's two-year government bonds offer on U.S. debt stayed close to its widest in about three and a half years, attracting foreign investors to the Australian Dollar. Investors also raised bets of the U.S. Federal Reserve cutting its interest rates again as early as December after a lowered growth forecast yesterday. ''The relative interest-rate story and falling yields in the U.S. are supporting the Australian dollar,'' said Greg Gibbs, a currency strategist in Sydney at ABN Amro Holding NV, the largest Dutch bank. ''The better performance by U.S. stocks at the end of the day also helped the currency.''
In forex trading, the Australian Dollar was worth 89.16 U.S. cents this morning in Sydney compared with 88.88 cents late in Asia yesterday. The Australian Dollar traded at 98.08 Japanese Yen from 98.01 Yen.
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