Dollar edges up as BoE eyed

Global economic confidence has been boosted by the prospect of more monetary support for Britain.

The Australian dollar is stronger after the Bank of England hinted at further stimulus for the UK economy. At 1.33pm (AEST) on Friday, the local unit was trading at 74.65 US cents, up from 74.50 cents on Thursday.

The Australian dollar rallied as investor confidence was boosted by the prospect of either a UK rate cut, quantitative easing or improved credit lines to big business, easyMarkets chief market strategist Anthony Darvall said.

“The Australian dollar saw a small dip at the start of the European session, below 74 US cents. But it quickly soared upwards, and as stocks advanced, the Australian dollar pushed closer to 75 US cents,” he said.

“Certainty provided after this Saturday’s federal election result may help improve the Australian dollar’s footing.” The Reserve Bank board meets next Tuesday, and any lack of apparent rate easing bias in its statement could push the Aussie dollar above 75 US cents, Mr Darvall said.

AAP