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The Australian dollar spiked to eight week highs on a struggling US dollar on Friday, having rallied almost five cents in the last few days as funds poured back into riskier investments. Aussie smashed past resistance at 86.63 US cents on heavy investment bank buying to reach 87.00 US cents.
That was up from 86.05 late here on Thursday and a low of 82.73 on Tuesday. Way now open to July's peaks around 88.70. Aussie also jumped to 100.00 yen, having climbed from a 94.95 trough just a few days ago, as investors borrow yen at low rates to invest in higher yielding currencies. US dollar weak across the board, hitting a record low on the euro, parity on the Canadian dollar and a 15-year trough against a basket of major currencies.

Copyright Reuters, 2007

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