Thursday, September 30, 2010

Aussie reaches parity with Loonie

for the first time in six years, the Australian dollar was on equal footing with the Canadian dollar, widely referred to as the loonie because of the imprint of a loon on the dollar coin.

The Aussie was fractionally more valuable than the Canadian currency briefly overnight and this morning was fractionally lower. It is the first time the two currencies have been one-for-one since 2004.

The Australian dollar broke through the 97-US-cent mark yesterday afternoon and touched the 97.3 mark again in evening trade. This morning it was buying 96.88 US cents and about midday east-coast time it was buying 96.8 US cents after taking a drop on the news that building approvals were worse than had been expected.

The softer housing figures means there is now some doubt about the Reserve Bank's resolve to increase interest rates when its board meets next week.

(Source: Sydney Morning Herald)

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