Australia, N.Z. Dollars Set for 2nd Weekly Gain on Rate Outlook
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The Australian and New Zealand dollars headed for a second weekly gain as investors bet both nations will increase interest rates even as the U.S. and Japan keep borrowing costs near zero.
Australia’s dollar traded above parity with the U.S. currency after the Reserve Bank said in a quarterly report today that economic growth will accelerate next year and the so-called Aussie’s advance will help slow inflation. New Zealand’s currency traded near the strongest since April 2008 as traders this week added to bets policy makers will raise rates over the next 12 months.