Economics
Aussie Is Near Three-Month High as RBA Has Only Words Left
This article is for subscribers only.
Stepping up verbal intervention may be the Reserve Bank of Australia’s only option to curb the Aussie as strengthening economic data and a neutral policy stance drive the currency toward a three-month high.
The local dollar touched 91.11 U.S. cents, approaching yesterday’s three-month high of 91.13, after Governor Glenn Stevens told lawmakers today jawboning has a limited effect on the currency. He said the exchange rate is high by historical standards, reiterating comments in a March 4 policy statement. The Aussie climbed this week as data showed faster-than-expected economic growth and the biggest trade surplus in 2 1/2 years.