Australian Dollar Set for Record Winning Streak as Commodities Prices Rise

(Bloomberg) -- The Australian dollar headed for a
12th day of gains, the longest winning streak since it was
allowed to trade freely in 1983, as the prices of raw materials
the country exports rose.

The currency traded near an 18-year high as the Westpac
Commodity Futures Index, an export weighted average of exchange-
traded commodity futures prices, advanced 4.5 percent to an all-
time high. The local dollar has surged 17 percent over the past
12 months as demand from China pushed up prices of raw materials,
which add about 14 percent to Australia's economy.


Read more at Bloomberg Currencies News

Australia Dollar Drops Most in 4 Months Versus Yen as Carry Trades Unwound

(Bloomberg) -- The Australian dollar dropped the
most in four months against the yen as a fall in U.S. stocks
prompted investors to pare positions funded by loans in Japan.

The local dollar declined for the second day after the
Standard & Poor's 500 Index fell the most in a month on concern
subprime mortgage losses will worsen a housing slowdown. Japan's
0.5 percent overnight lending rate has prompted investors to
borrow yen to take advantage of Australia's 6.25 percent interest
rate. The so-called carry trade has helped the currency gain 11
percent versus the yen this year.


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Buy Calls to Bet Australia Dollar Extends Rally, Suncorp's Pontikis Says

(Bloomberg) -- Investors should buy call options to
bet the Australian dollar rallies beyond its current 18-year
high versus the U.S. dollar, according to Peter Pontikis at
Suncorp-Metway Ltd.

The central bank will lift its benchmark by year-end, after
leaving it unchanged at 6.25 percent since November, according
to Suncorp-Metway and Lehman Brothers Holdings Inc. The
Australian currency has gained 9.3 percent this year as
investors bought the country's high-yielding debt with money
borrowed at lower rates in Japan and Switzerland.


Read more at Bloomberg Currencies News

Australian Dollar Trades Near 18-Year High as Prices of Commodities Gain

(Bloomberg) -- The Australian dollar traded near an
18-year high against the U.S. currency and the most in 16 years
versus the yen as prices rose for the metals the country exports.

The local dollar is the second-best performer among the 16
most traded currencies in the past five years as commodity
prices have surged. Exports of raw materials such as copper and
gold contribute about 14 percent to Australia's gross domestic
product. A measure of six metals traded on the London Metal
Exchange yesterday gained 0.5 percent to a one-month high.


Read more at Bloomberg Currencies News

Yen Drops as Advance in Asian Stock Markets Spurs Increase in Carry Trades

(Bloomberg) -- The yen fell to a record low against
the euro and dropped for a fifth day versus the dollar as a rally
in Asian stocks gave investors more confidence to buy higher-
yielding assets with money borrowed in Japan.

The currency also slid to a 16-year low against the
Australian dollar, taking losses in the past year to 13 percent,
as investors increased so-called carry trades. A stronger-than-
expected U.S. employment report added to optimism global economic
growth will be sustained, increasing the appetite of fund
managers for riskier assets.


Read more at Bloomberg Currencies News

Yen Declines as Improving Global Economic Growth Encourages Carry Trades

(Bloomberg) -- The yen fell to a record low against
the euro and a 16-year low against the Australian dollar as signs
of stronger global growth gave investors more confidence to buy
higher-yielding currencies with money borrowed in Japan.

Japan's yen has declined against all of the 16 most-traded
currencies since a July 6 report showed U.S. payrolls increased
faster than expected, suggesting growth in the world's biggest
economy is improving. The yen has dropped 13 percent against the
euro and 19 percent versus Australia's currency in the past year.


Read more at Bloomberg Currencies News

Dollar Falls to Lowest Level in More Than Three Weeks Versus Euro on Rates

(Bloomberg) -- The dollar fell to the lowest level
in more than three weeks against the euro after reports showed
the Federal Reserve's preferred measure of inflation slowed in
May and consumer spending rose less than economists' forecasts.

The data may raise speculation the Fed will keep interest
rates unchanged this year while other central banks extend
increases, dimming the allure of dollar-denominated assets. The
U.S. currency fell to the lowest level in 22 years against the
New Zealand dollar and the weakest since 1989 versus the
Australian dollar.


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Australian Shares Decline, Led by BHP, Macquarie on U.S. Economic Concerns

(Bloomberg) -- Australian stocks fell for a third
day. Stocks that depend on global growth, such as BHP Billiton
Ltd. and Macquarie Bank Ltd., dropped as the Australian dollar
traded near an 18-year high, and as concern intensified that U.S.
banks will be saddled with losses on mortgage bonds.

The S&P/ASX 200 Index slid 52.90, or 0.8 percent, to 6329.70
at the close in Sydney. About 15 stocks declined for every four
that gained.


Read more at Bloomberg Stocks News

Australian Dollar Near 18-Year High as Wider Bond Spread Lures Investors

(Bloomberg) -- The Australian dollar traded near an
18-year high as investors were attracted to the yield advantage
of the country's bonds over U.S. debt.

The yield spread between Australian two-year bonds and
equivalent Treasuries widened to 1.51 percentage points, the
most in two weeks. The currency is the second best performer
this month after New Zealand's dollar on Australia's 6.25
percent interest rate, which compares to 5.25 percent in the U.S.


Read more at Bloomberg Currencies News

Yen slides to 4-1/2-year low against dollar

(Reuters) - The yen fell to a 4-1/2-year low against the dollar on Friday as Japanese investors dumped their low-yielding currency for foreign assets and market players kept using the unit to fund carry trades.

The Australian dollar struck a 16-year peak against the yen and sterling hit a 15-year high as traders cited steady foreign currency buying by new Japanese investment trusts drawing in funds from households receiving summer bonuses.


Read more at Reuters Africa