Aussie Hits Three-Month High as Rate Hike Bets Fuel Weekly Rally

The Australian dollar has reached a three-month high as investors bet on another interest rate hike by the Reserve Bank of Australia. The currency, often referred to as the 'Aussie', traded near $0.7185 and is on track for its ninth consecutive weekly gain.

This rally comes after stronger-than-expected Australian inflation data was released earlier this week. The figures have strengthened expectations for further monetary tightening and helped the Aussie outperform most major currencies.

The potential ninth consecutive weekly advance would mark the longest winning streak since January 2021. Higher interest rates can support a currency by making assets denominated in that currency more attractive to investors seeking higher returns.