Guess which country? Reach 1.07 USD Acceptable?

Dollar hits 26-year high versus pound after Greek vote
June 30, 2011 - 9:53AM
Vote

The Australian dollar at highest in a generation against the UK pound. Illustration: Quentin Jones
Hopes that Greece may be able to avoid a default on its debts have sent the Australian dollar soaring, with the local currency hitting its highest against the UK pound since early 1985.

The Aussie dollar surged to 66.59 pence in morning trading. It also jumped against other major currencies, surging to almost $US1.07 and jumping above 74 euro cents and 86 yen.

The dollar gained more than 1 US cent overnight as investors cheered a vote in the Greek parliament to approve a plan to slash 28.4 billion euros ($38.9 billion) from government spending by 2015, in the first stage of a two-part vote aimed at unlocking emergency finance from the EU and the IMF. Stage two is later today, local time in Greece.

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Violence, though, continued for a second day on Athens streets as the general strike entered its second day.

The dollar was helped by strong gains in key commodities with oil rising for a third day and copper jumping to an eight-week high. As a major exporter of commodities, Australia's dollar tends to move in line with the prices of such raw materials.

“Risk appetite has stabilised and commodities are firmer,” said Richard Franulovich, a senior currency strategist at Westpac in New York. “It was a big relief for the market; it looks like Greece is going to get its tranche to avert a default.”

All up, the government's plan totals 78 billion euros, with a vote of approval for the second bill opening the way for Greece's Finance Minister Evangelos Venizelos to meet European counterparts on July 3 for talks on releasing a fifth tranche of aid from last year’s 110 billion-euro bailout.

Expectations rise

Bank of New Zealand currency strategist Mike Burrowes said risk sentiment rallied shortly before the vote overnight, on expectations that the measures would pass.

"That saw the Aussie trade up from around $US1.0550 to above $US1.0650," Mr Burrowes said from New Zealand.

"The market really moved to price in the passing of the austerity measures, so once it was validated... we didn't see dramatic moves higher (in the Australian dollar)."

Traders now are waiting on the second parliamentary vote, due later tonight, on implementing the austerity package.

"The market is expecting those to pass, given the majority they had last night," which was along party lines.

The local currency may trade between $US1.0620 and $US1.0720 during the domestic session today, Mr Burrowes said.

AAP with BusinessDay, Bloomberg



Read more: http://www.smh.com.au/business/mark...-greek-vote-20110630-1gro1.html#ixzz1QicvaTAL

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Ash007 said:

This means Singaporeans would have a tougher time quiting now.

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Dollar hits one month high against greenback
July 4, 2011 - 9:13AM

The dollar ... eyeing $US1.10 again and hitting generation highs against the British pound. Photo: Reuters
The Australian dollar hit a one-month high against the greenback and pushed beyond 67 British pence early today, a fresh 26-year high, as confidence returned to the market after Greece voted in favour of austerity measures last week.

At 4.45am today, the Australian dollar hit $US1.0803 but fell back to $1.0779 by 7am, up from $US1.0728 on Friday. Since 5pm on Friday, the local unit traded between $US1.0678 and $US1.0790.

The Australian dollar last traded in the $US1.07 range in early June. The Aussie hit a post-parity high of $US1.10 in early May but retreated to $US1.04 on June 28.

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As well as gaining ground on the US dollar, the Aussie continued its strong performance against the British pound, hitting a new peak of 67 pence early today.

Last week, the Australian dollar hit 66.8 pence but fell back to 66.7 pence at the close of trade on Thursday. Early today, the dollar pushed through 67 pence, a level not seen since 1985.

‘‘We’ve seen a broad-based selloff in the US dollar following the recovery in equity markets last week,’’ said Rochford Capital director Thomas Averill.

He said the momentum could slow after the rapid gains of the Aussie against the greenback in recent sessions.

While the local unit could struggle to surpass 108 US cents in the short term, Mr Averill predicted it could take a few weeks before making a meaningful run at $US1.10. The absence of a strong case for a local interest rate rise would cap its climb.

The RBA will meet tomorrow to decide on the interest rate settings, with the markets tipping no change to the 4.75 per cent level.

But the Aussie’s strength against the pound was expected continue.

‘‘The pound is doing very poorly across the board. Stagflation in an issue in the UK economy where you have persistent inflation but no real growth,’’ said Mr Averill.

Markets are concerned about how the UK banks will deal with that, he said.

‘‘If they do end up raising interest rates, it could result in a full-blown housing crisis in the UK.’’

Currently, consumers and businesses in the UK don’t have enough confidence in the economy, Mr Averill said. If interest rates rise there, people will curb the buying they are doing.

‘‘The pound is likely to be fundamentally weak against the Aussie for the next couple months,’’ he said.

The Aussie could rise to 70 pence in coming weeks, he said.

Greece will be able to pay its bills this month after eurozone finance ministers cleared the way late Saturday for the next 12 billion euro tranche of last year's 110 billion euro ($A150 billion) EU-IMF bailout.

The Greek parliament voted last week in support of an austerity package that will slash 28.4 billion euros from government spending by 2015 in order to secure the aid.

The local currency may trade between $1.075 and $1.08 during the domestic session on Monday, sais HiFX trading director Mike Hollows.

"It looks like it's pretty well supported into $1.0750 and then we'll have to see if it can crack through $1.08," Mr Hollows said.

"The break of $1.0775 on Friday night indicates there is more upside potential here."

Trade on Monday was expected to be thin, due to a public holiday in the US for the July 4 holiday weekend.

AAP with Chris Zappone



Read more: http://www.smh.com.au/business/mark...t-greenback-20110704-1gxs3.html#ixzz1R5t4tG7Q

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Dollar hits one month high against greenback
July 4, 2011 - 9:13AM

The dollar ... eyeing $US1.10 again and hitting generation highs against the British pound. Photo: Reuters
The Australian dollar hit a one-month high against the greenback and pushed beyond 67 British pence early today, a fresh 26-year high, as confidence returned to the market after Greece voted in favour of austerity measures last week.

At 4.45am today, the Australian dollar hit $US1.0803 but fell back to $1.0779 by 7am, up from $US1.0728 on Friday. Since 5pm on Friday, the local unit traded between $US1.0678 and $US1.0790.

The Australian dollar last traded in the $US1.07 range in early June. The Aussie hit a post-parity high of $US1.10 in early May but retreated to $US1.04 on June 28.

Advertisement: Story continues below
As well as gaining ground on the US dollar, the Aussie continued its strong performance against the British pound, hitting a new peak of 67 pence early today.

Last week, the Australian dollar hit 66.8 pence but fell back to 66.7 pence at the close of trade on Thursday. Early today, the dollar pushed through 67 pence, a level not seen since 1985.

‘‘We’ve seen a broad-based selloff in the US dollar following the recovery in equity markets last week,’’ said Rochford Capital director Thomas Averill.

He said the momentum could slow after the rapid gains of the Aussie against the greenback in recent sessions.

While the local unit could struggle to surpass 108 US cents in the short term, Mr Averill predicted it could take a few weeks before making a meaningful run at $US1.10. The absence of a strong case for a local interest rate rise would cap its climb.

The RBA will meet tomorrow to decide on the interest rate settings, with the markets tipping no change to the 4.75 per cent level.

But the Aussie’s strength against the pound was expected continue.

‘‘The pound is doing very poorly across the board. Stagflation in an issue in the UK economy where you have persistent inflation but no real growth,’’ said Mr Averill.

Markets are concerned about how the UK banks will deal with that, he said.

‘‘If they do end up raising interest rates, it could result in a full-blown housing crisis in the UK.’’

Currently, consumers and businesses in the UK don’t have enough confidence in the economy, Mr Averill said. If interest rates rise there, people will curb the buying they are doing.

‘‘The pound is likely to be fundamentally weak against the Aussie for the next couple months,’’ he said.

The Aussie could rise to 70 pence in coming weeks, he said.

Greece will be able to pay its bills this month after eurozone finance ministers cleared the way late Saturday for the next 12 billion euro tranche of last year's 110 billion euro ($A150 billion) EU-IMF bailout.

The Greek parliament voted last week in support of an austerity package that will slash 28.4 billion euros from government spending by 2015 in order to secure the aid.

The local currency may trade between $1.075 and $1.08 during the domestic session on Monday, sais HiFX trading director Mike Hollows.

"It looks like it's pretty well supported into $1.0750 and then we'll have to see if it can crack through $1.08," Mr Hollows said.

"The break of $1.0775 on Friday night indicates there is more upside potential here."

Trade on Monday was expected to be thin, due to a public holiday in the US for the July 4 holiday weekend.

AAP with Chris Zappone



Read more: http://www.smh.com.au/business/mark...t-greenback-20110704-1gxs3.html#ixzz1R5t4tG7Q

Click to expand...