The Australian dollar rose in value on Friday against the world's reserve currency, staying close to its top value in three months against the greenback, according to Bloomberg.
Strong economic data pushed the Aussie higher. Reserve Bank of Australia officials have assumed policy-neutral positions, which also spurs the monetary unit's gains. Governor Glenn Stevens said on Friday that borrowing costs are high, which he had said this past Tuesday. The Aussie's gains also are linked with the South Pacific nation having its biggest trade surplus in about 30 months.
"The RBA has undercut its efforts at verbal intervention by shifting to a neutral bias on rates," states a Tuesday client note authored by currency strategist Todd Elmer with Citigroup Inc., according to Bloomberg. "By removing the threat of lower interest rates, there is less reason for investors to take RBA rhetoric on FX seriously, because this is the most powerful tool at policy makers' disposal for impacting the exchange rate."
Thus far this month, the Aussie has climbed about 1.8 percent, which is approaching the 1.9 percent advance in February.
Stevens' remarks on Friday were during testimony with the House of Representatives Committee on Economics, The Australian reports.
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