Tuesday, November 02, 2010

EconomicsAustralia: Currency: Aussies' currency 'soars close to' USA's -- their both called 'dollars' -- so why not?

Wall Street Journal reporters Enda Curran and Geoffrey Rogow note the sudden t+tning of Australia's currency, "Australian dollar soars on rate decision" (Nov2,2k10).

The Reserve Bank of Australia surprised financial markets Tuesday when it tightened policy for the first time in six months in a pre-emptive strike to stave off looming inflation pressures being fuelled by a once-in-a-century mining boom.

The Australian dollar soared close to parity against the US dollar after the decision, which pushes Australian monetary policy closer to restrictive terrain for the first time since 2007. The move comes in stark contrast to the US and Europe, where central banks continue to keep rates at historic lows and are discussing possible further easing. The US Federal Reserve is widely expected ...
Yep, you can't get in to read further unless you buy your way in via a short-term subscription. Ta' 'ell wid dat!

-- EconoMix

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