The Australian dollar jumped to a 24-year peak against the US currency on Wednesday after higher-than-expected first-quarter inflation data led investors to gear up for an extended period of tight monetary policy. Annual core inflation accelerated to its highest in 17 years, outstripping market expectations and all but ending chances of any rate cut later this year by the Reserve Bank of Australia (RBA).
The data showed annual core inflation surged by 1.2 percent in the first quarter, beating market expectations of a 0.9 percent rise. For the year, underlying inflation rose 4.1 percent, higher than a Reuters forecast of a 3.8 percent increase and well above the RBA's target range of 2-3 percent.
The Aussie was at $0.9498/9500 against the US dollar, having advanced to $0.9517, its highest since March 1984 after the data was released, and up nearly a cent from late here on Wednesday.
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