Australian Proposed Carbon Price Cap Threatens Plan, Deutsche Bank Says

(Bloomberg) -- Australia's proposal to set a price
cap in its carbon trading system threatens the effectiveness of
the plan to reduce emissions blamed for global warming, said
Deutsche Bank AG's global head of carbon trading research.

Prices for carbon emissions allowances probably need to be
about A$55 ($47.31) a metric ton to ensure switching to cleaner
technologies, rather than a potential A$15 should a price cap be
set, Paris-based Lewis said today in an interview in Sydney.
Fifteen Australian dollars a ton is ``way too low'' to lead to
the development of technologies such as clean-coal power, he said.


Read more at Bloomberg Commodities News

Australian Dollar Holds Near 18-Year High on Bets Interest Rates Will Rise

(Bloomberg) -- The Australian dollar traded close
to an 18-year high on bets the central bank will raise the
benchmark interest rate next month.

The currency also climbed the most in almost five months
against the New Zealand dollar after that country's central bank
signaled a rate increase today may be the last. Australia's
dollar has gained the most of the 16 most-active currencies this
month as a report yesterday showed inflation was faster than
expected.


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Australian Dollar Advances, Nears 18-Year High in Early Sydney Trading

(Bloomberg) -- The Australian dollar rose to 87.76
U.S. cents at 7:24 a.m. in Sydney from 87.53 cents late in Asia
yesterday. It earlier reached 87.89 cents, the highest since
February 1989.

To contact the reporter on this story:
David McIntyre in Sydney at
dmcintyre2@bloomberg.net


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Australian Dollar Climbs to Highest in 18 Years in Early Trading in Sydney

(Bloomberg) -- The Australian dollar rose to 86.41
U.S. cents in early Sydney trading, the highest since February
1989. It was up from 86.17 cents late yesterday in Asia.

To contact the reporter on this story:
David McIntyre in Sydney at
dmcintyre2@bloomberg.net


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Yen Gains Against Higher-Yielding Currencies Before BOJ's Policy Meeting

(Bloomberg) -- The yen rebounded from a record low
against the euro on speculation the Bank of Japan will signal at
a meeting this week it will raise interest rates in August.

The currency also rose against the New Zealand dollar, the
Australian dollar and the British pound, which are favored for
their higher yields. An increase in Japan's 0.5 percent overnight
lending rate may discourage investors from borrowing yen to
purchase overseas assets, known as carry trades.


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Australian Dollar Trades Near 18-Year High as Prices of Commodities Gain

(Bloomberg) -- The Australian dollar traded near an
18-year high against the U.S. currency and the most in 16 years
versus the yen as prices rose for the metals the country exports.

The local dollar is the second-best performer among the 16
most traded currencies in the past five years as commodity
prices have surged. Exports of raw materials such as copper and
gold contribute about 14 percent to Australia's gross domestic
product. A measure of six metals traded on the London Metal
Exchange yesterday gained 0.5 percent to a one-month high.


Read more at Bloomberg Currencies News

Australian Dollar Near 18-Year Peak on the Nation's High-Yielding Assets

(Bloomberg) -- The Australian dollar traded near an
18-year high against the U.S. currency and the strongest in 16
years versus the yen on the nation's higher yielding assets.

Asian stocks rose to a record yesterday, suggesting
investors are prepared to buy higher returning assets overseas.
The currency has advanced 8.8 percent against the U.S. dollar
and 12 percent versus the yen this year as the Morgan Stanley
Capital International Asia Pacific Index of shares gained 11
percent. Australia's 6.25 percent interest rate compares to 5.25
percent in the U.S. and 0.5 percent in Japan.


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Australian Dollar Falls as Retail Spending and Building Approvals Decline

(Bloomberg) -- The Australian dollar fell from an
18-year high after government reports showed retail sales and
building approvals declined in May. Bonds rose.

The currency pared gains as traders cut odds the Reserve
Bank of Australia will increase its key interest rate this year.
Economists had expected retail sales to rise and building
approvals to drop by less. Australia's dollar earlier climbed on
speculation investors may be lured to the yield advantage of the
country's government bonds.


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Dollar Falls to Lowest Level in More Than Three Weeks Versus Euro on Rates

(Bloomberg) -- The dollar fell to the lowest level
in more than three weeks against the euro after reports showed
the Federal Reserve's preferred measure of inflation slowed in
May and consumer spending rose less than economists' forecasts.

The data may raise speculation the Fed will keep interest
rates unchanged this year while other central banks extend
increases, dimming the allure of dollar-denominated assets. The
U.S. currency fell to the lowest level in 22 years against the
New Zealand dollar and the weakest since 1989 versus the
Australian dollar.


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Australian Dollar Falls From 18-Year High as Investors Pare Carry Trades

(Bloomberg) -- The Australian dollar fell from an
18-year high against the U.S. currency on speculation investors
will pare higher-yielding assets as Asian stocks followed U.S.
equities lower.

Australia's currency also dropped the most in six weeks
versus the yen as investors pared so-called carry trades, where
they buy higher-returning assets with money borrowed in
countries with lower borrowing costs. The local dollar has made
the second-biggest gain the past year among major currencies on
Australia's 6.25 percent benchmark rate, which compares with
Japan's 0.5 percent and 5.25 percent in the U.S.


Read more at Bloomberg Currencies News

Australian Dollar Climbs to 16-Year High Versus Yen, U.S. Dollar on Yield

(Bloomberg) -- The Australian dollar rose to the
highest in 17 years against the U.S. currency and in almost 16
years against the yen as investors were lured to the nation's
higher-yielding assets.

So-called carry trades have lifted Australia's currency,
known as the Aussie, 23 percent against the yen the past year,
with investors attracted to a benchmark rate 5.75 percentage
points higher than Japan's, the lowest of major economies. The
Bank of Japan left borrowing costs unchanged last week and said
in its May minutes any increases would be ``gradual,'' spurring
bets the key rate won't be boosted this year.


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Yen Falls Versus Euro, Australian Dollar, Pound on Demand for Higher Yield

(Bloomberg) -- The yen fell to a record low against
the euro and a 15-year low against the Australian dollar on
speculation investors are borrowing the currency to increase
purchases of higher-yielding assets.

Japan's currency also reached a 19-year low against the New
Zealand dollar, before rebounding as traders said the Reserve
Bank of New Zealand intervened. Bank of Japan Governor Toshihiko
Fukui on June 15 said policy makers need to examine more
economic data before raising interest rates from 0.5 percent,
encouraging investors to add to so-called carry trades.


Read more at Bloomberg Currencies News

Yen Falls Against Euro, New Zealand Dollar After BOJ Leaves Rate Unchanged

(Bloomberg) -- The yen fell to a one-week low
against the euro on speculation Bank of Japan Governor Toshihiko
Fukui will signal plans to raise the overnight lending rate only
gradually after leaving it unchanged today.

The currency also slid against the New Zealand and
Australian dollars after policy makers unanimously decided to
keep the benchmark rate at 0.5 percent for a fifth meeting.
The yen traded near a 4 1/2-year low against the dollar as the
lowest borrowing costs in the industrialized world spur
investors to take out loans in Japan and buy higher-yielding
assets in so-called carry trades.


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Australian Dollar May Rise a Second Day as Prices of Commodities Increase

(Bloomberg) -- The Australian dollar may rise for a
second day on speculation price gains for commodities will boost
the income the country receives from exports.

Australia's currency traded near an 18-year high after a
measure of six tradable metals on the London Metal Exchange
yesterday climbed 2.2 percent. Raw material exports add about 14
percent to Australia's economic growth. The local dollar may
also be supported after Canada's Brookfield Asset Management Inc.
agreed to buy Australia's Multiplex Group for A$4.2 billion
($3.5 billion) in cash.


Read more at Bloomberg Currencies News

Australian Dollar Strengthens to 18-Year High on Faster Economic Growth

(Bloomberg) -- The Australian dollar rose to the
strongest since Feb. 1989 after a government report showed
economic growth in the first quarter was faster than expected.
Bonds fell.

The currency bought 84.13 U.S. cents at 11:37 a.m. in Sydney
from 83.82 cents immediately before the report and 83.83 cents
late in Asia yesterday.


Read more at Bloomberg Currencies News