Dollar edges higher as risk appetite grows

THE Australian dollar has nudged higher as risk appetite firmed slightly after China guided its currency higher.

THE Australian dollar has nudged higher as risk appetite firmed slightly after China guided its currency higher.

At 0630 AEDT on Tuesday, the local unit was trading at 69.82 US cents, up from 69.66 cents on Monday.

The Aussie rebounded after China guided the yuan higher for a second straight session on Monday, calming investor concerns about how far Beijing wanted to see the currency depreciate.

CURRENCY SNAPSHOT AT 0630 AEDT ON TUESDAY

One Australian dollar buys:

* 69.82 US cents, from 69.66 cents on Monday

* 82.05 Japanese yen, from 81.69 yen

* 64.22 euro cents, from 63.80 euro cents

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

Source: IRESS