Tuesday, July 3, 2007

Australian Dollar May Strengthen as Yields Attract After Stock Market Gain

(Bloomberg) -- The Australian dollar may gain on
speculation rising global stocks will give investors confidence
to buy the nation's higher-yielding assets.

The local dollar is the second-biggest gainer of the past
12 months among the 16 most-traded currencies as investors have
been attracted to Australia's 6.25 percent interest rate, which
the central bank is likely to keep unchanged today. That
compares with 5.25 percent in the U.S. and 0.5 percent in Japan.
The Morgan Stanley Capital International Asia Pacific Index
rose 0.7 percent yesterday to a record.


Read more at Bloomberg Currencies News

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