Dollar soars after Slovaks reschedule vote

THE Australian dollar rose to its highest level in three weeks as the approval for a revamped European bailout fund looks more likely.

THE Australian dollar rose to its highest level in three weeks as the approval for a revamped European bailout fund looks more likely.

At 6.30am (AEDT) today, the local unit was trading at 101.84 US cents, more than two US cent up from 99.42 cents yesterday.

Four Slovak political parties agreed on overnight (AEDT) to hold a second vote to approve the changes to the fund later this week, a day after an initial vote failed.

The turnaround came following pressure from other European nations and a warning from European Central Bank chief Jean-Claude Trichet that the world financial system faces systemic dangers.

Sixteen countries have already approved the changes, but under the eurozone's rules all 17 Eurozone nations need to vote in favour to increasing the size and powers of the bailout fund.