07.03.201405:20:55UTC+00Aussie close to three-month peak; RBA has few choice

Heightening verbal intervention might be the Reserve Bank of Australia's only option to limit the Australian dollar as fortifying economic figures and an objective policy stance push the currency toward a three-month gain.

The local dollar hit 91.11 U.S. cents, near yesterday's three-month peak of 91.13, following Governor Glenn Stevens told lawmakers today jawboning has a modest impact on the Aussie. He added the exchange rate is high by historical norms, reiterating remarks in a policy statement last March 4. The

currency advanced this week as data reported faster than anticipated economic progress and the largest trade surplus in 2 ½ years. The currency increased last month following the RBA hinted a time of steady rates and a drive away from attempts to verbally surge the exchange rate lower. It has incurred profits this month even after the central bank continued pointing out its strength.

Extending Gains

The Aussie has ascended 1.8% this month after escalating 1.9% in February, the best performance in five months. Its 14% slide in 2013 was the largest since 2008. The currency was somewhat changed at 90.86 U.S. cents as of 4:42 p.m. in Sydney. It dropped shortly following Stevens told lawmakers the currency above 90 U.S. cents was higher than the central bank's assessment.

Australia’s benchmark 10-year yield reached 4.18%, the most since February 25. The yield on three year debt, among the most sensitive to interest rate anticipations, accrued three basis points to 2.96%. The statistics bureau posted a A$1.43 billion (or $1.3 billion) trade surplus for January yesterday, surpassing economist predictions for A$100 million. Other data this week displayed Australian retail sales moved 1.2% in January, the largest profit in 11 months, and 4th quarter gross domestic product went up 2.8% from a year earlier.

Stevens repeated this week the stable rates would be the wisest course, after waving a transition to a neutral policy bias last month.