The Australian Dollar reached a 28-year high against the British Pound and is set to strengthen further against the Japanese Yen.
The Australian currency touched 68.5 pence overnight marking its highest level since 1985. The rise came after the UK currency continues to suffer from a lack of confidence in the country’s economy.
Commonwealth Bank currency strategist Joseph Capurso expects the dollar to remain around these levels for the rest of the year.
“The Aussie against the pound is going to be at these very extreme levels for probably most of the year, unless things in the UK turn around fast. The Aussie is rising and is very high against most currencies, particularly the European currencies, but the pound has been struggling because of concerns about the government’s budget position and also the central bank in the UK, the Bank of England, is likely to buy more assets in a bid to stimulate the slumping economy,” he said.
Against the Japanese Yen the ‘Aussie’ hit a four and half year high as the Japanese government continues its efforts to bolster the country’s economy by weakening its currency.
Despite the ‘Aussies’ strength against the Yen, and the Pound it fell against the US Dollar. The decline came after trade data out of China (Australia’s biggest trading partner) posted data that showed its imports of iron ore dropped in February. Exports soared by 22%, far outweighing economist expectations whilst total imports fell by 15% as a result of factory closures during the Lunar New Year celebrations.
Comments are closed.