Australia’s Currency Beats the Dollar as Haven in Iran Crisis

Australia’s dollar has emerged as an unlikely haven, buoyed by elevated oil and gas prices and growing bets that the central bank may raise interest rates as early as next week.

The Aussie climbed to its highest level since June 2022 at 71.68 US cents and more than a 35-year high against the yen on Tuesday, making it the top-performing major currency this year. Citigroup Inc. says the rally may extend to 75 US cents within three months despite the Aussie’s usual sensitivity to the greenback and broader risk sentiment.