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US dollar at 2-1/2-yr low, gold near record high

The US dollar slid to a 2-1/2-year low against a basket of major currencies and Asian stocks were poised to hit a 3-year high on Thursday, as investors scrambled to get in front of upward momentum in higher-yielding assets, particularly in emerging markets.

April 21, 2011 / 08:32 AM IST

The US dollar slid to a 2-1/2-year low against a basket of major currencies and Asian stocks were poised to hit a 3-year high on Thursday, as investors scrambled to get in front of upward momentum in higher-yielding assets, particularly in emerging markets.


Brent oil rose above USD 124 a barrel while spot gold held near a record high above USD 1,500 an ounce in early Asian trade as a sharply weakening dollar supported a broad rally in commodities.


Commodity-related currencies rose with the Australian dollar hitting a post-float high against the US. dollar at USD 1.0740, as the hunt for yield intensified on prospects that US interest rates would remain at a record low for a long time.


The US dollar also fell against other major currencies. The dollar index, a gauge of its performance against six other major currencies, has tumbled since Monday to its lowest level since August 2008 at 74.116. The all-time low for the index is 70.698.


The MSCI Asia ex-Japan rose 0.5% 504.2, within striking distance of a three-year high at 504.4. Technology stocks got a lift after iPod maker Apple crushed forecasts on roaring global demand for its products.


Strong corporate results from US bellwethers bolstered also bolstered Japan's Nikkei which was up 0.9%.

first published: Apr 21, 2011 08:16 am

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