Investors raised bets on US interest rate

Investors raised bets on US interest rate after the world’s biggest economy shed the least jobs in November since the recession began. Australia’s dollar fell the most in a week as debt offers over similar U.S. Treasuries narrowed to the smallest in two months. Futures traders raised to 30 percent the probability of a change in the Federal Reserve’s target rate in April from 18 percent a week earlier, according to Bloomberg data.
Benchmark interest rates are 3.75 percent in Australia and 2.5 percent in New Zealand, compared with 0.1 percent in Japan and as low as zero in the U.S., attracting investors to the South Pacific nations’ higher-yielding assets. The risk in such trades is that currency market moves will erase profits.