Australian Dollar Hits 24-year High

The Australian dollar rose to a 24-year high on Monday as rising commodity prices and a sell-off in the US dollar boosted the currency., Financial Times 5/19/2008 6:32:02 AM

Analysts said growing appetite for risk in the past week had also supported the high-yielding Australian dollar.

This has pushed investors back into carry trades, in which low-yielding currencies such as the yen are sold to finance the purchase of higher-yielding currencies like the Australian dollar.

The Australian dollar rose to a high of $0.9570 against the dollar, its strongest level since 1984, before easing back to stand flat on the session at $0.9550.

Analysts said as well as rising gold prices, which broke back over $900 an ounce on Monday, the surging price of shipping goods around the world suggested Chinese demand for Australian coal and iron ore remained elevated and would continue to support the Australian dollar.

Australian Dollar Hits 24-year High