Australian Dollar Rises on Speculation RBA Will Increase Rates

Australia’s dollar rose against the US dollar on speculation the central bank will increase interest rates tomorrow for a record third month.

The Australian and New Zealand dollars climbed for the first time in three days following UAE central bank's offer to give more money to lenders facing losses on Dubai World, fueling optimism investors will buy higher-yielding assets. Demand for New Zealand’s dollar increased after Prime Minister John Key rejected a proposal to slash government spending and tax rates to boost productivity.