The Australian Dollar is look at a second weekly gain as Australia's interest rate advantage over the US. creates speculation that demand will rise for the currency due to investors seeking higher returns. Investors have betted that the US. Federal Reserve will will lower its borrowing rates while the Reserve Bank of Australia (RBA) is more likely to increase interest rates rather than drop them, which will lead to investors seeking the Australian Dollar as they find alternatives to exit US. investment. The RBA has increased interest rates three times this year in order to curb rising inflation. ''We're still quite positive on the Australian dollar,'' said Sue Trinh, a currency strategist at RB Capital Markets in Sydney. ''We expect the Reserve Bank to raise rates again.''
In forex trading, the Australian Dollar was worth 77.38 US. cents during trading this morning in Sydney in comparison to last nights 77.55 US. cents ni late Asian trading yesterday. Sue Trinh has forecasted 78.00 US. cents by the years end.
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