THE dollar was higher at noon after bouncing on the back of a strong performance in equities.
At 12:00 AEDT, the dollar was trading at $US0.9172/75, up 0.24 per cent from yesterday's close of $US0.9150/56.
Since 07:00 AEDT on Wednesday, the local unit has moved in a tight range between $US0.9154 and $US0.9182 according to IRESS data.
ICAP economist Adam Carr said the Australian dollar sold off earlier in the morning after the release of an International Monetary Fund (IMF) report supporting an "on hold'' policy for New Zealand.
"But we've seen it bounce back,'' Mr Carr said.
"One of the reasons is our equities are putting in a pretty decent performance.
"They're outperforming performances in Europe and the US.''
The share market remained higher at noon with takeover activity in gold stocks and strength in resources stocks driving the gains.
Start of sidebar. Skip to end of sidebar.
End of sidebar. Return to start of sidebar.
At 12:00 (AEDT), the benchmark S&P/ASX200 index was up 22.3 points, or 0.46 per cent, at 4897.8 points, while the broader All Ordinaries index had gained 22.9 points, or 0.47 per cent, at 4916.
Mr Carr said there was a general sense of optimism over commodity-based currencies like the dollar.
A larger than expected recorded trade deficit had no impact on the local currency after it was released at 11:30 AEDT, he said.
The trade balance of goods and services was a seasonally adjusted $1.92 billion deficit in February after an upwardly revised $1.12 billion in January, the Australian Bureau of Statistics said.
Consumer prices rose by 0.5 per cent in March, revealing a build-up of inflationary pressures, a TD Securities Melbourne Institute monthly inflation gauge showed.
But Mr Carr said the survey results did not have a great affect on the local currency which is expected to hold on to recent gains.
Shares close higher as miners gainTennesseans’ diagnoses vary on health-care plan
