Australia’s dollar declined toward an 11-month low after a private report showed business confidence slid amid bets that the Reserve Bank will cut interest rates further to curb the currency’s strength.
Australia’s interest-rate cuts will prove more successful than New Zealand’s intervention in foreign-exchange markets at curbing gains that made their currencies the world’s best performers since 2008.
Stocks rose, with the Dow Jones Industrial Average reaching a third straight record, as U.S. jobless claims dropped. The euro gained as the European Central Bank said the economy may stabilize this year, while Japan’s yen weakened to 95 per dollar for the first time since 2009.
The euro was 0.3 percent from an almost four-week high before European Commission President Jose Barroso speaks in Brussels after calling yesterday for a “coordinated approach” to recapitalize the region’s banks.
Australia’s dollar fell the most against the greenback in three months as the central bank said borrowing costs are about “average,” signaling it may slow the pace of advances after raising interest rates today.
Lou Lebedin, a former Bear Stearns Cos. executive who had become JPMorgan Chase & Co.’s global head of prime brokerage, is being replaced in that role, according to three people familiar with the situation.