- Published on Friday, 06 July 2012 01:11
- Written by Bloomberg.com
Australia’s dollar headed for a fifth weekly gain, the longest winning streak since February, on prospects a new round of global monetary stimulus will keep economic recovery from faltering.
China yesterday cut its key interest rate for the second time in a month, the European Central Bank lowered borrowing costs to a record and the Bank of England expanded asset purchases. New Zealand’s dollar traded near a two-month high after the government said the budget deficitwas narrower than forecast. Demand for the South Pacific nations’ currencies was limited after a jump in Spanish and Italian bond yields added to concern Europe’s debt crisis is far from a resolution.
“Global monetary easing is sending money into commodity- related currencies,” said Junichi Ishikawa, an analyst in Tokyo at IG Markets Securities Ltd. “The Australian dollar is well supported.” Full story