Dollar bucks trend rises against greenback

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THE Australian dollar has bucked the trend and risen against the greenback. At 0700 AEDT on Monday, the local unit was trading at 76.34 US cents, up from 75.77 cents on Friday.

Westpac senior market strategist Imre Speizer said the US dollar rose strongly against most major currencies after US Federal Reserve chair Janet Yellen hinted that the worlds biggest economy could be allowed to heat.

However, he said, the Australian dollar had outperformed without providing a specific reason.

Momentum is starting to switch to positive, the immediate target 76.90 US cents, he said in a note.

While further gains to around 77 US cents are possible during the month ahead, driven in part by the faltering US dollar and yield-chasing flows, the Australian dollar is losing energy (perhaps a reflection of its declining yield advantage).


One Australian dollar buys:

* 76.34 US cents, from 75.77 cents on Friday

* 79.58 Japanese yen, from 78.83 yen

* 69.55 euro cents, from 68.73 euro cents

* 62.82 British pence, from 62.10 British pence

* 107.50 New Zealand cents, from 106.77 NZ cents

(* Currency closes taken at 1700 AEDT previous local session)