Dhaka, Bangladesh (BBN) – The Australian Dollar (AUD) broke parity against USD on Friday for the first time since becoming a freely traded currency.
Australia’s higher rates, robust resource-driven growth and remarks from Fed Chairman gave AUD a push to USD 1.0004. European currency (EUR) also rose to USD 1.4157, a weekly review report said.
British Pound Sterling (GBP) rose over an eight-month high of 1.6104 against the broadly weak USD on Friday after dovish comment from Federal Reserve Chairman Ben Bernanke, who said low inflation suggests the case for further action on the economy.
However, GBP fell sharply against the USD on Monday in line with a broad rebound in the U.S. currency on doubts about how aggressive Federal Reserve monetary easing will be. GBP continued to decline against the USD and EUR on Tuesday after UK factory orders came in lower than expected, raising concerns about the economic outlook.
The safe-haven dollar rallied broadly on Tuesday, while the EUR and commodity-sensitive AUD tumbled after a surprise interest rate increase from China prompted investors to cut risk exposure.
Sterling was hurt on Wednesday after the UK government detailed its public spending cuts. The USD climbed against the Japanese Yen (JPY) and EUR on Thursday after U.S. Treasury Secretary Tim Geithner said major currencies were roughly in alignment now.
The Canadian Dollar (CAD) fell to its lowest level in a month after the Bank of Canada kept interest rate unchanged at 1.0 percent, on the growing feeling that the central bank, which raised rates three times in a row between June and September, would now keep them steady for some time.
BBN/SSR/AD-24Oct10-12:03 pm (BST)
