Forex News – Aussie Near 4-Year Low After RBA’s Lowe Says Currency May Weaken

Australia’s dollar traded 0.3 percent from a four-year low after central bank Deputy Governor Philip Lowe said yesterday the currency will probably depreciate in line with commodity export prices.

The yen was near the weakest level in seven years against the U.S. dollar as Bank of Japan board member Sayuri Shirai said she supported the central bank’s additional monetary stimulus last month. The U.S. dollar was little changed against most of its major peers before a report economists said will show durable goods slid for a third month.

 

“Weaker commodity prices and the possibility that the interest-rate differential could narrow between the U.S. and Australia, with the Fed looking to raise interest rates next year, have been pointing to a weaker Australian dollar for some time,” said Janu Chan, a Sydney-based economist at St. George Bank Ltd. who attended the Australian Business Economists’ annual dinner yesterday where Lowe spoke.

 

Australia’s dollar traded at 85.38 U.S. cents as of 12:02 p.m. in Tokyo from 85.30 cents yesterday, when it touched 85.14 cents, the least since July 2010.

 

The yen gained 0.1 percent to 117.85 per dollar, after touching 118.98 on Nov. 20, the weakest since August 2007. The euro was little changed at $1.2469. The single currency bought 146.95 yen from 147.17.

 

Source: Bloomberg (26 Nov 2014)