Australian Dollar Weakens as Central Bank Boosts Currency Sales
Australia’s dollar declined against all of its major peers except the yen after the nation’s Reserve Bank said it increased sales of the currency last month to a category of buyers that includes foreign central banks.
Demand was limited after an Israeli air strike on the Gaza strip and signs of a global slowdown reduced demand for riskier assets. The Australian and New Zealand dollars rallied versus the yen after Japan’s opposition leader Shinzo Abe called for unlimited central-bank easing until deflation is defeated in the world’s third-largest economy.
Australia’s dollar slid 0.4 percent to $1.0332 in New York from the previous day, when it dropped 0.6 percent. The Aussie gained 0.7 percent to 83.86 yen.
New Zealand’s currency fell 0.1 percent to 80.92 U.S. cents. The so-called kiwi jumped 1 percent to 65.68 yen.
The RBA sold A$483 million ($499 million) more in local currency than it bought in October through the so-called other outright transactions category, the most since June 2009, according to data released yesterday. It sold a net A$275 million in the spot foreign exchange market.
Australian bonds rose, sending the benchmark 10-year yield to the lowest level in almost one month.
To contact the editor responsible for this story: Dave Liedtka at email@example.com