The Australian dollar swung between gains and losses against its U.S. counterpart, with the currency pair’s volatility near the most in 1 1/2 years, as a cash squeeze in China roiled demand for higher-yielding assets.
Currency strategists from Barclays Plc to Deutsche Bank AG are telling investors to sell the yuan, this year’s best-performing emerging-market currency, as growth slows in the world’s second-largest economy and inflows wane.
Australia’s dollar fell to the lowest in almost three years versus the greenback after home- loan approvals grew at the slowest pace in three months, boosting the case for further cuts to borrowing costs.
Jonathan Cavenagh, a currency strategist in Singapore at Westpac Banking Corp., comments on the outlook for India’s rupee. The currency traded at 45.12 per dollar as of 11:39 a.m. in Mumbai, according to data compiled by Bloomberg.