The Australian dollar has closed the week lower, dragged down by concerns over the SEC fraud investigation into US investment bank Goldman Sachs, and continuing worries over Greece defaulting on its sovereign debt.
For the week, the Australian dollar closed 0.5 per cent weaker at $US0.923, compared to last week's close of $US0.928.
During the week, the domestic currency traded between $US0.916, and $US0.935
AMP Capital investors chief economist Shane Oliver said the Australian dollar was likely to head higher against the $US as the interest rate differential in Australia’s favour continues to widen and commodity prices remain strong.
"We continue to see it rising to parity against the $US this year," Mr Oliver said.
The local unit sank early in the week as investors sought risk averse assets after US investment bank Goldman Sachs was charged by the US Securities and Exchange Commission for fraud.
It rallied midweek, rising more than one US cent higher after the Reserve Bank of Australia (RBA) left the door open for a May interest rate rise.
The minutes from the RBA's April meeting showed the bank forecasts of a stronger-than-expected rise in Australia's terms of trade influenced its decision to lift the rate this month.
Mr Oliver said while the minutes from the RBA meeting were somewhat hawkish, governor Glenn Stevens seemed more relaxed about the outlook, referring to a degree of caution in some parts of the economy and describing interest rates as being pretty close to average.
The Australian dollar sank again toward the end of the week as ongoing worries about Greece defaulting on its sovereign debt had investors offload high-yielding assets.
Concerns about the large amount of Greece's public debt, and the potential knock-on effect on other eurozone nations, has sent jitters through financial markets in recent months.
For the week, the Australian dollar closed 0.5 per cent weaker at $US0.923, compared to last week's close of $US0.928.
During the week, the domestic currency traded between $US0.916, and $US0.935
AMP Capital investors chief economist Shane Oliver said the Australian dollar was likely to head higher against the $US as the interest rate differential in Australia’s favour continues to widen and commodity prices remain strong.
"We continue to see it rising to parity against the $US this year," Mr Oliver said.
The local unit sank early in the week as investors sought risk averse assets after US investment bank Goldman Sachs was charged by the US Securities and Exchange Commission for fraud.
It rallied midweek, rising more than one US cent higher after the Reserve Bank of Australia (RBA) left the door open for a May interest rate rise.
The minutes from the RBA's April meeting showed the bank forecasts of a stronger-than-expected rise in Australia's terms of trade influenced its decision to lift the rate this month.
Mr Oliver said while the minutes from the RBA meeting were somewhat hawkish, governor Glenn Stevens seemed more relaxed about the outlook, referring to a degree of caution in some parts of the economy and describing interest rates as being pretty close to average.
The Australian dollar sank again toward the end of the week as ongoing worries about Greece defaulting on its sovereign debt had investors offload high-yielding assets.
Concerns about the large amount of Greece's public debt, and the potential knock-on effect on other eurozone nations, has sent jitters through financial markets in recent months.