Forex News: Reserve Bank of Australia raised their core Interest Rate to 3.25%
Wednesday, October 7, 2009
Skirting widespread speculation, the Reserve Bank of Australia raised their core interest rate by a quarter basis point to 3.25%. The move put Australia in front of all other Western nations, making them the first to raise rates amidst the current economic crisis and sent the Aussie on an upward tear through Forex Online pairs.
The rate hike also helped spur on stock markets across the globe as optimism grew that the global economy was recovering.
At 12:05AM GMT, the Australian Dollar was trading up 1.53% against the US Dollar to a 14 month high of .8904, up 1.25% to the Euro to 1.653, up .76% against the Canadian Dollar to .9433 and up .33% versus the Japanese Yen to 79.06.
3 comments:
IF Dollar strong in future what will be Interest rate?
Markets are up due to higher liquidity inflows, depreciating dollar. Co-relating the rate hikes and stock markets seems quite difficult to digest.
The spur on stock markets can be due to the higher risk appetite, increased liquidity flows, better than expected earnings and depreciating dollar.
Hence the correlation between the RBA rate hikes and the stock markets is a bit difficult to digest
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