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)
Copyright (c) 2026 Dow Jones & Company, Inc.
Comments