The Australian dollar rose today against other major currencies, as the banks minutes release hinted markets that the Reserve Bank of Australia will probably increase the interest rate by 25 basis points again next month.
AUD/USD gained more than 1.2% today, making it a second such day for this currency pairs. AUD/JPY had just a minor gain today, but nevertheless its already a 7th day in a row. EUR/AUD declined from 1.6164 to 1.6008 today as the investors were less confident in the euro.
According to some currency analysts, Australian dollar possesses a great potential on the Forex market. Australia is the only major economy that is eagerly increasing the interest rate, while other countries talk about cutting or at least keeping the rates. This fact adds even more attractiveness for those traders that prefer benefits of the positive interest yield on the portfolios currency pairs.
The minutes of the central banks meeting on Feb. 5 showed today that there was a debate on whether to increase interest rate by 25 or 50 basis points. Since the rate was increased by 0.25% there is a strong chance that the next meeting will bring another 0.25% hike.
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