Investors Favor Currencies Where Interest Rates Look Set to Rise -- Market Talk

Dow Jones05-05 18:20

1020 GMT - Investors favor those currencies with central banks willing to raise interest rates to tackle inflation, ING's Chris Turner says in a note. Among G-10 currencies, the Australian dollar and Norwegian krone have performed best since the Middle East conflict began, he says. Australia and Norway are net energy exporters but also have interest rates at 4% or above. "It looks like investors are preferring currencies backed by central banks prepared to run restrictive monetary policy." The Reserve Bank of Australia raised rates for a third time running Tuesday to 4.35%. Norges Bank could raise rates to 4.25% on Thursday, Turner says. The Australian dollar and Norwegian krone hit their highest versus the U.S. dollar in around four years on Friday, LSEG data show. (jessica.fleetham@wsj.com)

 

(END) Dow Jones Newswires

May 05, 2026 06:20 ET (10:20 GMT)

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