A new currency swap has lifted the Australian Dollar to new all-time highs.
The dollar rose against the Japanese Yen after the US Federal Reserve raised interest rates by 25 basis points, making the dollar more attractive to investors and traders.
But the dollar’s gains on Monday afternoon came despite an initial drop after US Treasury Secretary Jack Lew raised interest payments on US Treasury bonds to zero.
With the Federal Reserve raising rates, the US dollar has gained 0.5 per cent against the yen, while the Australian has gained 1.5 points, according to the US Dollar Index.
On Tuesday, the Australian’s dollar rose as much as 1 per cent to a record high of $US1.0772, while on Wednesday it rose 0.2 per cent.
Its gains against the Yen also were more dramatic.
Australian dollar up by 0.25 per cent, Australian dollar up 1 per