AUS $ Traded Highly Against Yen

Market Research Company Asia Pulse released today (December 5, 2005) that the Australian Dollar was being traded against the Japanese Yen by Sydney traders due to the higher yield expected from the said transaction.

The Asia Pulse said, in an article posted at Yahoo! Finance, that Australia’s current official cash rate of 5.50 per cent came out of the cross rate trading at 90.35/43.

"The Aussie dollar remains well bid, while the Yen still suffers against the US dollar, which has driven the Aussie/Yen higher…at levels not seen for quite a while…not since May 1997," Asia Pulse’s article on Yahoo! Finance emphasized.

Another factor contributing to this yield include firmer commodity prices such as gold at US$500 an ounce. However, despite the Aussie dollar’s increase, currency markets worldwide will remain unaffected since this will only affect an increase in Australia’s GDP, Asia Pulse reported.

So far, the Aussie dollar’s growth has shown a relative increase in the local economy there as inventories for the quarter ended September have already gained by 0.3% along with company profits by 3.9%.

(Source: Australian Dollar Higher To Noon-Dec. 5, 2005, Yahoo! Finance)

Rupee Joins Bandwagon of Forex Highs

India’s Rupee joined the bandwagon of currency increases against the Dollar the first week of December, together with most Asian currencies whose countries experience high remittance inflows during the Christmas Holidays.

According to Hindu.com, "the Rupee rallied smartly against the US currency early today (Dec. 9) on fresh exporter dollar sales amid a retreating dollar overseas in moderately active trade at the Interbank Foreign Exchange market."

"The domestic unit was quoted at Rs 46.1750/1850 per dollar in late morning deals, sharply higher from Thursday’s close of Rs 46.25/26 per dollar following a distinctly firm start at Rs 46.14/16 per dollar," the website added.

The Rupee’s forex high was a result of the retreating dollar overseas and partly by steady FII inflows. During the said week, the Rupee was quoted at Rs 54.51/53 to the Euro Pound, Rs 80.84/86 to the Pound Sterling, and Rs 38.29/31 to the Japanese Yen.

(Source: Rupee Rallies Smartly Against the USD In Early Trade, Hindu.Com)