Dollar slightly higher after stocks rose

THE Australian dollar was slightly higher today, following a positive lead from Wall St and precious metals overnight.

THE Australian dollar was slightly higher today, following a positive lead from Wall St and precious metals overnight.

At 0700 (AEST) today, the Australian dollar was trading at 104.09 US cents, up from 103.86 cents yesterday.

Since 1700 (AEST) yesterday, the local unit traded between 103.75 US cents and 104.73 cents.

News that rebels were capturing the Libyan capital raised hopes that leader Muammar Gaddafi may be overthrown and helped propel US stocks higher.

US equities have fallen for four consecutive weeks amid fears of a double dip recession in the US and worries about the European sovereign debt crisis.

HiFX senior trader Stuart Ive said the small gains made by US stocks overnight helped push the Australian dollar, the euro and the New Zealand dollar higher.

"In the early European session, there was a bit of consolidation in markets after what has been a very hectic time," Mr Ive said from Auckland.

"The (US) stock market benefited on the upside, mainly driven by technology stocks.

"Overall, it was just a bit of consolidation in the market. Nothing dramatic has really changed overnight."

Mr Ive said there was a rumour that the Bank of Japan may intervene again to stop the yen's rise.

A strong yen is harmful to the Japanese economy because it reduces the value of foreign earnings for companies that export cars, electronics and other manufactured goods.

Mr Ive said the market this week would focus on a speech by US Federal Reserve chairman Ben Bernanke to a central bank symposium in Jackson Hole, Wyoming, on Friday night, Australian time.

In Australia today, Reserve Bank of Australia (RBA) deputy governor, Ric Battellino will give a speech in Sydney.

Mr Ive said he expected the Australian dollar to trade in a range between 103.60 US cents and 104 75 cents today.