Santos Second-Quarter Sales Decline on Higher Currency, Delayed Shipments

(Bloomberg) -- Santos Ltd., Australia's third-
biggest oil and gas producer, said second-quarter revenue fell
8.3 percent as the rising Australian dollar reduced the value of
exports and some shipments fell outside the period.

Sales fell to A$633.8 million ($562 million) in the three
months ended June 30, from A$691.5 million a year earlier, the
Adelaide-based company said in a statement to the Australian
Stock Exchange. Production rose 4.7 percent to the equivalent of
15.6 million barrels of oil, a record for the second quarter, and
sales volumes fell 4.9 percent to 15.4 million barrels.


Read more at Bloomberg Energy News

Australia Dollar Trades Near 18-Year High as Prices of Commodities Gain

(Bloomberg) -- The Australian dollar traded near an
18-year high against the U.S. currency and the strongest in 16
years versus the yen as the prices of raw materials the nation
exports rose.

The currency gained for a sixth day against the yen as a
measure of six metals on the London Metal Exchange, including
copper and aluminum, climbed 0.7 percent yesterday. Commodity
exports add about 14 percent to Australia's gross domestic
product. It also advanced a second day against the U.S. dollar
after the Federal Reserve lowered its economic growth forecast.


Read more at Bloomberg Currencies News

Dollar sluggish, nagged by subprime concerns

(Reuters) - The dollar hovered near a record low against the euro and its weakest in more than 20 years versus sterling and the New Zealand dollar on Tuesday as concern about the U.S. subprime market kept it under selling pressure.

The yen slipped, hitting a 16-year low against the Australian dollar as traders returning after a Japanese public holiday sold the low-yielding currency for assets in higher-yielding ones in what many in the market call the "carry" trade.


Read more at Reuters Africa

Japan Should Diversify $700 Billion of Currency Reserves, Adviser Ito Says

(Bloomberg) -- Japan, the largest overseas holder
of U.S. Treasuries, should invest $700 billion of its currency
reserves in higher-yielding assets such as stocks and corporate
bonds, said Takatoshi Ito, an adviser to the prime minister.

The reserves should be managed by a special fund that will
gradually diversify into euros, Australian dollars and emerging
market currencies, he said in an interview in Tokyo. Ito said
that the Ministry of Finance, which expanded its currency
reserves by selling yen in 2003 and 2004, has essentially
borrowed the funds from the Japanese people.


Read more at Bloomberg Currencies News

Yen Declines as Improving Global Economic Growth Encourages Carry Trades

(Bloomberg) -- The yen fell to a record low against
the euro and a 16-year low against the Australian dollar as signs
of stronger global growth gave investors more confidence to buy
higher-yielding currencies with money borrowed in Japan.

Japan's yen has declined against all of the 16 most-traded
currencies since a July 6 report showed U.S. payrolls increased
faster than expected, suggesting growth in the world's biggest
economy is improving. The yen has dropped 13 percent against the
euro and 19 percent versus Australia's currency in the past year.


Read more at Bloomberg Currencies News

Australian Dollar Advances to 16-Year High Versus Yen on Yield Advantage

(Bloomberg) -- The Australian dollar rose to a 16-
year high against the yen on speculation stronger global growth
will give investors confidence to buy higher-yielding currencies
with funds borrowed in Japan, in so-called carry trades.

The local dollar is the second-biggest gainer versus the
yen in the past 12 months among the 16 most-traded currencies as
investors are attracted to Australia's 6.25 percent interest
rate, which compares with 0.5 percent in Japan. The currency
rose for a fourth day versus the yen after a U.S. non-farm
payrolls report on July 6 increased faster than expected,
suggesting global economic growth is strengthening.


Read more at Bloomberg Currencies News

Australian Dollar Strengthens for Second Day on Appeal of Higher Yields

(Bloomberg) -- The Australian dollar rose for the
second day against the U.S. currency and yen as investors were
attracted to the nation's higher yielding assets.

The currency was headed for the fifth-straight quarterly
advance against the U.S. dollar and yen on Australia's 6.25
percent interest rate. Traders have taken advantage of the yield
over Japan's 0.5 percent benchmark by borrowing money there and
buying Australia's higher returning assets, in a strategy known
as the carry trade.


Read more at Bloomberg Currencies News

Australia Dollar Gains a Third Day, Near 18-Year High, as Gold Price Rises

(Bloomberg) -- The Australian dollar rose a third
day, approaching an 18-year high, as prices for metals exported
by the nation, including gold, climbed.

Gold futures for August delivery rose $4.80 to $664.70 an
ounce on the Comex division of the New York Mercantile Exchange
yesterday. The price has climbed 16 percent in the past year.
Gold is the third-biggest commodity export in Australia's A$1.02
trillion ($863 billion) economy.


Read more at Bloomberg Currencies News

Australian Dollar Falls as High Yielding Assets Sold on U.S. Stock Drop

(Bloomberg) -- The Australian dollar snapped six days
of gains as a slump in U.S. stocks prompted investors to sell
higher yielding assets which they bought with money borrowed in
Japan.

The currency declined the most in three weeks as investors
pared positions in the so-called carry trade after the Dow Jones
Industrial Average fell 1.5 percent, the most in almost three
months. Australia's dollar reached an 18-year high yesterday as
successive days of economic data showed growth is accelerating
and employment had gained.


Read more at Bloomberg Currencies News

Australian Dollar Rises to 18-Year High on Better-Than-Expected Employment

(Bloomberg) -- The Australian dollar rose to an 18-
year high after a government report showed employers added more
workers than expected in May. Bonds fell.

The currency bought 84.52 U.S. cents at 11:32 a.m. in Sydney
from 84.38 cents immediately before the report and reached 84.63
cents, the strongest since February 1989. It traded at 84.12
cents late in Asia yesterday.


Read more at Bloomberg Currencies News

U.K. Pound to Fall as Nation's Interest Rates Peak, Credit Suisse Predicts

(Bloomberg) -- Investors should use options to bet
the U.K. pound will extend a decline versus the Australian
dollar because the Bank of England will lift interest rates less
than traders currently anticipate, according to Credit Suisse.

The pound, already close to a one-year low year versus the
Australian dollar, will slide further because the central bank
will stop after one more rate increase this year, Credit Suisse
forecasts. At the same time, the Australian dollar is set to
gain as a quicker global economy fuels demand for its commodity
exports, the bank said.


Read more at Bloomberg Currencies News

Australian Dollar Advances on Investor Appetite for Risk, Yield Premium

(Bloomberg) -- The Australian dollar advanced,
snapping five days of losses, as rising appetite for risky
investments lured traders to the nation's higher-yielding assets.

The currency gained as stock markets from China to the U.S.
climbed yesterday, suggesting investors are searching for better
returns. The local dollar has risen against 14 of the 16 most
active currencies this year as investors have been attracted to
Australia's key borrowing cost at a six-year high of 6.25
percent, 1 percentage point above the equivalent U.S. rate and
5.75 percentage points more than in Japan.


Read more at Bloomberg Currencies News