Australian dollar at 2-1/2 month high vs weak US dollar

LONDON: The Australian dollar rose to a 2-1/2 month high against the US dollar, which hit a two-week low against a basket of currencies on Thursday as gains in equities encouraged buying of riskier and higher-yielding currencies.

Traders also cited talk of central bank demand to diverisfy assets into the Australian dollar due to its higher yield and relatively solid economic fundamentals.

The Australian dollar rose to $1.0416, its strongest since early May.

The dollar index fell to a two-week low of 83.002 as better risk appetite prompted investors to turn away from the safe-haven currency.