"The expected forward US rate advantage versus the euro is the lowest in 10 years," Steve Englander, head, global G10 FX research and North America macro strategy at Standard Chartered Bank said in a note. And "euro-area equities are experiencing the most extended outperformance versus US equities in a decade." The Aussie dollar rose 0.51% to $0.6664, after earlier getting to $0.6717, the highest since April 21.
The currency jumped against the dollar after the Reserve Bank of Australia (RBA) unexpectedly lifted the cash rate to 3.85% and said further tightening may be required to ensure that inflation returns to target in a reasonable time frame.
"I would think the RBA now thinks they need to see a 4 in front of the cash rate before thinking they
might be done," said Ray Attrill, head of FX strategy at National Australia Bank.
"Certainly, the data flow since April has been on the strong side," he added. "It's very probable that
another one is to come, though whether it's as soon as June remains to be seen."
The yen gained, reversing earlier losses after last week's Bank of Japan decision to maintain
ultra-low interest rates.
The dollar fell 0.56% to 136.67 yen, after earlier hitting 137.78, the highest since March 8.
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Currency bid prices at 3:00PM (1900 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index 101.9300 102.1700 -0.22% -1.507% +102.4000 +101.8900
Euro/Dollar $1.1001 $1.0976 +0.23% +2.67% +$1.1007 +$1.0940
Dollar/Yen 136.6700 137.4600 -0.56% +4.25% +137.7650 +136.3300
Euro/Yen 150.40 150.91 -0.34% +7.20% +151.6100 +149.8400
Dollar/Swiss 0.8933 0.8959 -0.29% -3.39% +0.8995 +0.8928
Sterling/Dollar $1.2469 $1.2495 -0.20% +3.11% +$1.2512 +$1.2436
Dollar/Canadian 1.3619 1.3543 +0.59% +0.54% +1.3637 +1.3529
Aussie/Dollar $0.6664 $0.6631 +0.51% -2.24% +$0.6717 +$0.6621
Euro/Swiss 0.9825 0.9828 -0.03% -0.69% +0.9867 +0.9816
Euro/Sterling 0.8821 0.8782 +0.44% -0.26% +0.8822 +0.8780
NZ $0.6208 $0.6164 +0.72% -2.22% +$0.6218 +$0.6164
Dollar/Dollar
Dollar/Norway 10.8000 10.7340 +0.64% +10.08% +10.8290 +10.6960
Euro/Norway 11.8828 11.7726 +0.94% +13.24% +11.8965 +11.7425
Dollar/Sweden 10.3013 10.3018 +0.06% -1.02% +10.3446 +10.2666
Euro/Sweden 11.3331 11.3267 +0.06% +1.65% +11.3388 +11.2684
(Reporting by Karen Brettell: Additional reporting by Kevin Buckland in Tokyo and Alun John in London; Editing by Bernadette Baum and Jonathan Oatis)