11/06/2012 - 15:43

$A pulls back from parity but tipped to rise

11/06/2012 - 15:43

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$A pulls back from parity but tipped to rise

The Australian dollar rallied to a four-week high against the US dollar, briefly hitting parity this morning, after Spain secured a bank rescue deal.

At close of local trade today, the Aussie was buying 99.8 US cents, but analysts are expecting it to rise over parity in the near term on the buoyant news from Spain.

The Spanish government announced overnight it had secured a €100 billion ($125 billion) bailout package, staving off the threat of a run on its banks if concerns over Greece return.

The dollar jumped to $1.001 in early trade this morning, rallying nearly a full US Cent to its highest level since mid-May.

Trade in the currency was lacklustre, however, with Australian markets closed for the Queen’s Birthday public holiday. 

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