Commodity currencies get a boost from equities

London

COMMODITY-linked currencies such as the Australian and Canadian dollars inched towards recent peaks on Wednesday as stock markets in Europe rose, boosting appetite for riskier assets and currencies.

European stock markets bounced after starting the day in the red and US stock futures pointed to gains on Wall Street. Also, with iron ore prices hitting 10-month highs, the Australian dollar rose back towards highs last seen in June last year. It was last trading 0.1 per cent higher at US$0.7820. "Stock are rising and a generally optimistic mood about commodities like iron ore, are helping commodity-linked to resume their upward trek," said a spot trader.