BLBG:Australian, N.Z. Dollars Gain as Investors Pare Rate-Cut Bets
The Australian and New Zealand dollars gained versus most of their major peers as investors pared bets that the countries’ central banks will lower interest rates.
The so-called Aussie and kiwi slid versus the yen after the Bank of Japan (8301) expanded its asset-purchase fund, its main policy tool, by 11 trillion yen ($138 billion) to 66 trillion yen. Demand for the higher-yielding currencies recovered after being limited earlier amid concern a super storm ravaging the American Northeast will hurt the U.S. economy.
Australia’s dollar climbed 0.3 percent to $1.0360 as of 5:44 p.m. in Sydney and fell 0.1 percent to 82.36 yen. The New Zealand currency added 0.2 percent to 82.11 U.S. cents and slid 0.2 percent to 65.26 yen.
Overnight index swaps data compiled by Bloomberg showed traders estimate there is a 59 percent chance of a quarter-point rate cut by the Reserve Bank of Australia at its November meeting, compared with a 64 percent probability yesterday. The odds for New Zealand’s central bank to lower its benchmark in December by the same amount fell to 14 percent from 18 percent.
To contact the reporter on this story: Monami Yui in Tokyo at myui1@bloomberg.net
To contact the editor responsible for this story: Rocky Swift at rswift5@bloomberg.net
