FX traders are starting to look Down Under as a place to source cheap funds. FMTNews Australian
SYDNEY: A decade-long slide in Australian interest rates is threatening to turn one of the global currency market’s most popular wagers on its head.
It’s quite a snub for a nation in its 29th year of economic expansion, and comes as policy makers struggle to counter the financial impact of drought, wildfires and the coronavirus. The Australian dollar has climbed the rankings of funding currencies to be one of the most efficient to pair against the peso, according to Adam Cole, Royal Bank of Canada’s currency strategy chief for Europe.
A decade ago, China’s rampant demand for Australian commodities exports propped it up while other nations faltered. Today the relationship looms as a huge risk. This could then force it into an asset purchase program known as quantitative easing — a path followed by Japan and Europe — and something once regarded as unthinkable in Australia.
Deutsche Bank AG’s Tim Baker agrees. “I don’t think the world is so desperate for funding currencies that Australia’s becomes one,” said Baker, a macro strategist for the bank in Sydney.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
'Samsung Ultra-thin Glass' trademarked in 38 countriesSamsung commercialises Z Flip's ultra-thin folding glass display for other device manufacturers. FMTNews FMTLifestyle Samsung SamsungZFlip
Read more »
Samsung commercialises Z Flip’s ultra-thin folding glass display for other device manufacturers | Malay MailSAN FRANCISCO, Feb 23 — Earlier this week, Samsung announced the commercialisation of the ultra-thin folding glass used to create the display of the flexible Galaxy Z Flip; such a launch gives other, smaller companies the opportunity to develop their own renditions of a smartphone with a bending...
Read more »
Israeli forces kill Palestinian near Gaza border | The Malaysian InsightPalestinian suspected of placing a bomb near the fence.
Read more »
Dortmund move 2nd as Haaland hits 40th goal of seasonBVB are now 4 points behind leaders Bayern Munich. FMTNews Dortmund
Read more »
Bursa hits lowest level since December 2011 | The Malaysian InsightLocal bourse declines 42.78 points, or 2.79%, to 1,488.22 when market resumes after lunch.
Read more »
GLC stocks take heat on possible political realignment in morning tradingConsumer products also record huge losses as composite index drops by 15 points at 11am. FMTNews Bursa
Read more »