Dollar gains ground


nerd, piggy bank, money, coinThe Australian dollar has recovered some ground following its dip below 90 US cents, helped along by some US dollar weakness.

At 0700 AEST on Tuesday, the local currency was trading at 90.28 US cents, up from 90 cents on Monday.

The Australian dollar fell to a fresh six month low of 89.84 US cents overnight but received some reprieve from stronger commodity prices and a dip in US dollar strength, BK Asset Management MD, Kathy Lien, said.

The iron ore price rose 3.9 per cent to $85.20 per tonne on Monday.

“The rise in commodity prices and decline in the US dollar contributed to the move,” Lien said.

“The deeply oversold currency recovered quickly after a brief dip below 90 US cents.”

Lien said Reserve Bank of Australia meeting minutes due to be released on Tuesday were not expected to have a significant impact on the currency.


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