Australia’s
dollar weakened for a second day on speculation Governor Glenn Stevens
will signal at a policy meeting that the currency’s recent advance is a
concern.
The
Aussie dropped against 12 of its 16 major peers on Tuesday after
surging 13 percent from a seven-year low set in January to a nine-month
high last week. Commonwealth Bank of Australia, the nation’s largest
lender, estimates the currency is now strong enough to be of concern to
the central bank after becoming the most overvalued since 2014. Policy
makers will leave their benchmark interest rate at 2 percent, according
to all of the economists surveyed by Bloomberg.
The
Australian dollar slipped 0.2 percent to 75.89 U.S. cents as of 9:54
a.m. in Sydney after dropping 0.9 percent on Monday. The currency
appreciated to 77.23 cents on March 31, the strongest level since July
1.
Source: Bloomberg
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