Timothy Moore Online editor

May 27, 2020 – 6.14am

The Australian dollar rose near 2 per cent at one point overnight, narrowing its year-to-date loss to its US counterpart, amid rising optimism about the economic outlook.

That optimism is being driven by the slow and steady easing of lockdown measures, particulary in the US. Apple overnight said it’s preparing to reopen 100 of its US stores.

The year-to-date loss against the US dollar now stands at 6 per cent. AAP

The Aussie leapt as high as US66.75¢, before paring its gain. It was up 1.6 per cent to US66.52¢ near 6am AEST.

The year-to-date loss against the US dollar now stands at 6 per cent.

The local currency has now risen more than 15 per cent from its March lows below US57.50¢.

Among the reasons for the overnight retreat in the US dollar was a Conference Board report that showed US consumer confidence edged higher this month after collapsing in April.

The Conference Board said consumers “were moderately more optimistic about the short-term outlook. Those expecting business conditions will improve over the next six months increased from 39.8 per cent to 43.3 per cent, while those expecting business conditions will worsen decreased, from 25.1 per cent to 21.4 per cent”.

The dollar spot index was 0.9 per cent lower to 98.9910 at 3.50pm New York time; it earlier fell as low as 98.8980.

The US dollar’s overnight weakness also reflected a strong rally in US stocks. The Dow Jones Industrial Average was poised to close with a more than 500-point advance.

Source: https://www.afr.com/markets/currencies/australian-dollar-surges-as-risk-tolerance-rises-20200527-p54wpy