The Australian dollar surged overnight to its highest level against the US dollar since February 2023, driven by a sharp decline in the greenback.
The currency was trading at US 70.11 cents earlier today after rising by 1.4 per cent.
The rise came ahead of the release of new inflation figures scheduled for 11.30 a.m. today.
The Reserve Bank of Australia is expected to raise interest rates at its meeting next week if consumer prices increase more than anticipated.
IG market analyst Tony Sycamore told the Australian Financial Review that geopolitical uncertainty and weakness in the US dollar were key factors behind the Australian dollar’s surge.
He added that the US dollar’s broad-based weakness has intensified following last week’s Greenland-related developments, putting the greenback at risk of a further decline.
