Wall St boosts dollar


coins, dollar, moneyThe Australian dollar is higher after US stocks recovered some ground following last week’s losses, as market sentiment turns around.

At 0700 AEST on Tuesday, the local unit was trading at 93.33 US cents, up from 93.15 cents on Monday.

Since 1700 AEST on Monday, the Australian dollar has traded between 93.06 and 93.38 US cents.

The Dow Jones Industrial Average was up 0.47 per cent after all three major US stock indices lost more than two per cent last week.

Westpac senior market strategist Imre Speizer said there was a big turnaround in the market’s mood.

“US equities halted a week old slide,” he said.

“There were few catalysts to point to, apart from the Portuguese central bank bailing out the country’s largest lender, containing fears of contagion.”

The Reserve Bank of Australia holds its monthly board meeting on Tuesday, and the cash rate is widely expected to stay unchanged at a record low of 2.5 per cent for at least the next few months.

However, the focus will be on the short statement that comes with the decision for signs that the RBA is impatient with the persistently high exchange rate or a change to its on hold stance.


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