The Australian dollar has surged to a four-year high amid warnings that the rally may have gone too far, with investors betting that the war in the Middle East will end quickly, and the central bank will hike rates aggressively.
The dollar rose to US71.97¢ on Thursday, its highest level since 2022, after US President Donald Trump raised hopes of a diplomatic breakthrough to end the war and the reopening of the Strait of Hormuz, through which one-fifth of the world’s oil shipments travel.
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