The Australian dollar soared to a fresh 18-year peak against the US dollar on Friday, fuelled by an insatiable appetite for high yielding currencies amongst global investors.
The Aussie advanced past the 105.00 yen mark for the first time in 16-years, boosted by growing demand for carry trades, where investors borrow in the Japanese yen to buy higher-yielding currencies like the Aussie or the New Zealand kiwi.
The Aussie was quoted at $0.8485/8490 against the US dollar, up 0.4 percent from $0.8455/58 here late on Thursday. It dealt as high as $0.8490 late in the session.
Against the yen, the Aussie quoted at 105.17/27, up from 104.55/65 yen here late on Thursday. It has risen over three percent this month benefiting from increased demand for carry trades.
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