Business Day 30/4/2013 – Derek Mumford
Stock rally pushes dollar higher
The Australian dollar has closed higher, climbing above 103.5 US cents as a positive day on equity markets supported the currency.
The Australian dollar was trading at 103.58 US cents, up half a cent from Monday’s local close of 103.24 US cents.
It rose three-tenths of a US cent during New York trading, when a positive day on Wall Street supported Australian dollar buying.
The currency stayed within a narrow range between 103.40 US cents and 103.50 US cents for most of Tuesday’s local session, before a late afternoon push sent the currency to its intraday high.
Local equity markets had a good day, with the S&P/ASX200 soaring 1.3 per cent.
Rochford Capital senior consultant Derek Mumford said the Australian dollar’s rally was led by gains on the local stock market.
‘‘Risk appetite, particularly when viewed from an equity market perspective, is quite high and the Aussie seems to benefitting from it,’’ Mr Mumford said.