Australian Dollar Hits Three-Month High as Rate Hike Bets Rise

The Australian dollar has reached its highest level in three months, trading at 72 US cents on Friday.

This rise follows a hotter-than-expected inflation result released on Wednesday, which led to increased bets that the Reserve Bank could lift interest rates at its next meeting in late September.

Major local and international banks have since revisited their Reserve Bank interest-rate expectations, with some forecasting one further rate rise. Bloomberg market pricing now puts the chance of a rate increase at 48 per cent, up from 40 per cent a day earlier.