Sept. 20 (Bloomberg) -- The Australian dollar advanced versus its U.S. peer as the Bank of Japan’s unexpected monetary stimulus expansion boosted demand for higher-yielding assets.
The Aussie gained against the majority of its 16 most-traded counterparts after Japanese policy makers added 10 trillion yen ($128 billion) in stimulus, following measures by the Federal Reserve and European Central Bank this month. New Zealand’s currency declined versus most peers as the nation’s annual current-account deficit widened to the most in three years amid rising fuel imports and improved profit for foreign-owned banks.
Australia’s currency appreciated 0.2 percent to $1.0480 in New York yesterday after earlier falling as much as 0.4 percent to $1.0418. It declined 0.3 percent to 82.13 yen after rising 0.6 percent.
New Zealand’s dollar, nicknamed the kiwi, declined 0.1 percent versus the greenback to 82.67 U.S. cents after rising as much as 0.3 percent. The kiwi decreased 0.6 percent to 64.81 yen.
The Japanese central bank’s decision to enlarge its asset-purchase fund to 55 billion yen was forecast by five of 21 economists surveyed by Bloomberg News. The bank kept its benchmark interest rate between zero and 0.1 percent.
The kiwi has strengthened 3.7 percent this year, the biggest increase among the 10 developed-nation currencies on the Bloomberg Correlation-Weighted Indexes. The Aussie has fallen 0.4 percent and the greenback is down 3.2 percent.
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