Aussie Dollar Nears All-Time High
By Adam Jordan
To look at the way the euro has risen in the last week or so, you would not think it was a currency that many investors would avoid. It did not strengthen much against the dollar and the pound, but the euro did go up. While investors have paused for breath and have stopped chucking stones for the moment, they are still wary about the euro for the same old reasons (Greece and Ireland were rescued from bankruptcy and Portugal is probably in need of a similar bailout).
Investors are now trying to work out what to do, after a meeting of EU finance ministers came up with no new money and no new plan of action. The EU would like everyone to believe its rescue fund is ample enough to be able to cope with future bailouts, but not everyone is convinced.
What investors are sure of, though, is the antipodean dollars. The Aussie dollar came close to an all-time high against sterling and the New Zealand dollar was within shouting distance of a similar high. Investors like the currencies of commodity-exporting nations and they like high interest rates. The Australian and New Zealand dollars tick both of these boxes.
Adam Jordan is a currency specialist at foreign exchange provider Moneycorp.