Aussie climbs on inflation

Australia’s dollar climbed to the highest level in almost two weeks against its U.S. peer as traders pared bets on a cut in interest rates after a jump in inflation.

South Africa’s rand and the Turkish lira rose for a fourth day as emerging-market currencies and stocks advanced on investor bets China will accelerate measures to boost its housing market. Indonesia’s rupiah jumped the most in two weeks after Joko Widodo was named as the nation’s next president. The euro was little changed against the greenback and yen. The pound declined as Bank of England Governor Mark Carney said interest- rate increases will be restrained relative to the past.

The “market just looking for excuse to buy Aussie and a trimmed mean CPI is as good as any,” said Marc Chandler, the chief currency strategist at Brown Brothers Harriman & Co. in New York. “Market had been leaning toward risk of rate cut by end of year. This gives a rethink.”

The Australian dollar climbed 0.6 percent to 94.48 U.S. cents at 9:07 a.m. New York time after reaching 94.54 cents, the highest level since July 10. The euro was at $1.3464 and 136.50 yen after touching 136.41 yen, the lowest since Feb. 4. The Japanese currency was little changed at 101.39 per dollar.

The MSCI Emerging Markets Index rose 0.3 percent to 1,077.43, its highest close since January 2013.

Emerging currencies

An index of emerging-market currencies rose for a fourth day as 14 of 22 respondents to a Bloomberg News survey this month said China will need to “somewhat” increase stimulus to meet its 2014 expansion goal of 7.5 percent, even after growth accelerated to that pace in the second quarter. A property- industry slump poses the biggest risk to growth in the second half, 16 economists said.

The gauge, with equal weightings of the dollar’s 20 most- traded emerging-market peers, climbed 0.2 percent to 92.8560, the highest since July 14.

The rand strengthened 0.4 percent to 10.5257 per dollar after touching 10.5005, the strongest level since May 30. Turkey’s lira appreciated 0.6 percent to 2.0937 per dollar and reached 2.0865, the strongest since June 11.

The rupiah advanced to the strongest level in two months after the General Elections Commission said yesterday Widodo secured 53.15 percent of votes cast in the July 9 election, beating Prabowo Subianto, a former army commando, who gained 46.85 percent. Prabowo called the voting undemocratic.

The rupiah gained 0.8 percent to 11,508 per dollar, the biggest increase since July 7. The currency earlier appreciated to 11,483, the strongest since May 20.

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