Why is the Australian dollar trading at four-year highs? | The Business | ABC NEWS
The Australian dollar is trading around four-year highs against the greenback as it holds its ground above 72 US cents, after the market close on Monday.
J.P. Morgan chief economist and head of FX and interest rate strategy, Ben Jarman says the strength in the Australian dollar is largely due to the interest rate differential between the Reserve Bank and the rest of the world, particularly the US.
He says the RBA has chosen a unique path, hiking interest rates, while other central banks have not raised rates yet. If the RBA hikes rates on Tuesday, May 5 as widely expected by markets and economists, this would be the third interest rate rise in 2026.
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Read more here: https://www.abc.net.au/news/2026-05-04/asx-markets-business-news-live-updates/106636410
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