The Australian dollar extended its winning streak to rise to a fresh 3-month high against the beleaguered US currency on Wednesday, bolstered by sustained risk appetite and favourable interest rate differentials.
The euro surged to an all time peak of $1.5047 on increased worries about the health of the US economy after yet another batch of weak economic data cemented views that more rate cuts by the Federal Reserve would be needed.
By 9:25 am (2225 GMT) the Aussie was at $0.9346/49 against the US dollar, up from $0.9280/83 late here on Tuesday. It rose to $0.9348, its highest since November 7, and not far from a 23-year peak of $0.9401 struck last November. The Aussie has gained more than 8 percent since it struck a five-month low against the US dollar in mid-January, bolstered by a growing yield advantage over the US and firm commodity prices.
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