Australian Dollar Hits Three-Month High Amid Interest Rate Hopes
The Australian dollar continued its winning streak on Friday, reaching a three-month high against the US dollar. The currency rose by 0.2% to 0.7205, its highest level since May 15, after opening at 0.7191 and falling as low as 0.7189.
The Australian dollar has now gained around 0.45% against the US dollar this week and is on track for a ninth consecutive weekly advance. This would be its longest weekly winning streak since August 2010, according to Economies.com.
Government data released in Australia showed that inflationary pressures remain a concern for Reserve Bank of Australia policymakers, increasing expectations for an Australian interest rate hike in September. Deutsche Bank called for the Reserve Bank of Australia to raise interest rates by 25 basis points in September, citing renewed upside risks to inflation.