The Australian dollar touched a one- month high after the Reserve Bank said there were further signs easy policy and a weak currency were having an impact. Strength in the Aussie won’t be sustained, BlackRock Inc. said.
Australia’s dollar rose for a third day after Turkey’s central bank raised rates to arrest a run on the lira that had roiled risk appetite. The kiwi gained before New Zealand’s central bank meets tomorrow.
The yen plunged the most against the dollar last year since 1979 as Bank of Japan Governor Haruhiko Kuroda embarked on an unprecedented plan to boost economic growth and ward off 15 years of deflation.
Macquarie Group Ltd., which has ousted Canada’s Desjardins Group as the world’s most accurate currency forecaster, is telling clients that its top picks for 2014 call for declines in Australia’s dollar and the yen.
The euro fell for the first time in five days versus the dollar amid bets the region’s economy will trail that of the U.S., spurring the European Central Bank to keep interest rates low as the Federal Reserve slows stimulus.