Dollar settles below 90
Business
The Australian dollar rose past 90 US cents for the first time in almost a month after the Federal Reserve chairman Ben Bernanke called for more action to stimulate the American economy.
Early on Saturday morning, the Australian currency peaked at 90.07 US cents, its highest level since December 12.
The Australian dollar has since fallen after traders, not expecting the currency to go any higher, sold the Aussie and took profits.
Early Monday, the local unit was trading at 89.56 US cents, down from 89.71 cents on Friday.
Westpac New Zealand senior market strategist Imre Speizer said Bernanke played down comments from other Federal Reserve officials who said interest rates might be raised once the Fed has tapered its economic stimulus program.
“Fed chairman Bernanke said policy will remain accommodative despite quantitative easing tapering,” he said.
“Commodity currencies outperformed amid thin holiday conditions on Friday.”
Speizer expects the the Australian dollar to rise in the coming weeks, with 92 US cents a possibility.
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