Australian Dollar Falls 0.7% to 71 US Cents as Yield Edge Narrows
Updated
Updated · Bloomberg · May 20
Australian Dollar Falls 0.7% to 71 US Cents as Yield Edge Narrows
1 articles · Updated · Bloomberg · May 20
The Australian dollar traded around 71 US cents after falling 0.7% this week, making it the weakest performer among Group-of-10 currencies and leaving it on course for a second straight weekly decline.
A global bond selloff has eroded the Aussie’s yield advantage over US assets, reducing one of the currency’s main supports as investors reassess relative returns.
Middle East tensions have added pressure, with traders bracing for possible escalation in hostilities and shifting toward safer assets.
AT Global Markets said the currency could slip below 70 US cents in the near term if those headwinds persist.
Is the Aussie dollar's fate now tied more to global geopolitics than its own economy?
Can a US-led $40 billion insurance plan reopen the world's most critical oil chokepoint amid escalating conflict?