Forex News

The Reserve Bank of Australia increased the national benchmark rate for the second time in 2008 — from 7.00% to 7.25%. The last time interest rate was increased on the 5th of February.

After one of the worst weeks for the U.S. dollar and the attraction of the large capitals to the high-yielding assets this week, the Australian dollar reached its record high value against USD in 24 years.

The Australian dollar rose today against other major currencies, as the bank’s minutes release hinted markets that the Reserve Bank of Australia will probably increase the interest rate by 25 basis points again next month.

Yesterday’s triumph of the currencies against the Japanese yen didn’t last too long. Today yen soared up to the two-week high against the euro and the Great Britain pound on the bearish stock market trading session.

Japanese yen continued to fall against other currencies today during the Asian session after the Reserve Bank of Australia lifted its interest rate to the historically high value — 7.00%.

Today during the Asian trading session on Forex Australian dollar continued its bullish trend against the U.S. dollar and reached the new maximum value since 14th of November, 2007.

Today both the Australian and New Zealand dollars continued their daily growth against their counterpart from the United States on willingness of the Forex traders to earn from the interest rates difference.

The Australian dollar gained yesterday after the Federal Reserve announced an emergency rate cut from 4.25% to 3.50%. It also continued to gain today through the most of the Asian trading session, but has already went down past the daily opening price.

Both Australian and the New Zealand dollars gained today on a presumption that the international investors bought Australia’s and New Zealand’s government bonds as their premiums yield more than their U.S. and Japanese counterparts.

Australian dollar improved its positions against U.S. dollar and Japanese yen today after the very successful Asian/Australian stock markets session and some promising report on the country’s economy.