Aussie dollar strengthens on AAA ratings

Tuesday 07 August 2012

Article by Mozo

The Australian dollar has seen a strong performance over the last week, eventually coming to a rest at 1.0568 to the US dollar and 0.6755 to the British pound.

This will be encouraging news to anyone looking to get travel money to Australia as it remains one of the few countries to have maintained its AAA status from all three major credit rating firms.

It is thought that the Reserve Bank of Australia's decision to stick with interest rates at 3.5 per cent will also have a positive impact on the economy as a whole.

Hong Kong-based head of Asian currency research at HSBC Paul Mackel said there seems to be an inconsistency about where the Aussie dollar is actually trading.

"It's quite clear that foreign investors still see Australia as a very sound investment destination, and this type of capital flow, for the bond market in particular, has been quite supportive of the currency," he added.

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