AUD could rise to US 96 cents
Tuesday February 26, 2008
Due to speculation that the Reserve Bank of Australia (RBA) will raise interest rates another quarter of a per cent at its next meeting, the Australian dollar has hit a three month high at US 94.42 cents, and is expected to increase to US 96 cents by June.
Previous forecasts saw the Australian dollar to ease back to US 85 cents, but investment in the Australian dollar and commodities have seen predictions that the dollar will continue to grow, along with the seemingly stable loan industry in Australia.
Another interest rate rise could negatively affect many people with mortgages, but long-term savings accounts stand to benefit from the rising interest and high trading dollar.
Sources: Australian Financial Review, Bloomberg