Australian dollar at three-week high

02 Jun, 2007

The Australian dollar threatened the 83 cents level for the first time in two weeks on Friday, buoyed by a fresh 15-year high on the cross rate against the yen as investors favoured riskier bets on high-yielding currencies.
The Aussie/yen cross rate extended gains in offshore trade to reach 100.91 yen on Friday, its highest since May 1992, on demand for carry trades, which involve borrowing the low-yielding yen to invest in high-yield currencies.
The Aussie dollar matched its offshore high of $0.8292. The Aussie dollar was quoted at $0.8287/90, compared with $0.8244/46 here late on Thursday, according to Reuters data. The Aussie/yen cross was quoted at 100.85/95 yen, up from 100.16/26 yen here late on Thursday.

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