Australia Dollar Trades Near Parity on Outlook for Higher Rates

Australia’s dollar traded near parity with the greenback on prospects the central bank will raise policy rates to temper inflation, boosting the extra yield offered by the nation’s bonds over similar-maturity U.S. debt.

Australia’s currency climbed to 99.24 U.S. cents today before a government report tomorrow that economists said will show consumer price inflation stayed near the upper-limit of the central bank’s inflation target. New Zealand’s dollar held two days of gains as an advance in U.S. stocks boosted demand for higher-yielding assets.