The Australian dollar unexpectedly becomes a "safe haven" as high oil and gas prices and expectations of interest rate hikes boost the exchange rate.

The Australian dollar unexpectedly became a safe haven in the market. With high oil and gas prices and investors increasing their bets on the possibility of the Reserve Bank of Australia raising interest rates as early as next week, the Australian dollar has been boosted. The Australian dollar rose to its highest level since June 2022 against the US dollar on Tuesday, and the exchange rate against the Japanese yen also hit a more than 35-year high, making it the best-performing major currency so far this year. On Wednesday, the Australian dollar continued its upward trend against the US dollar, rising by 0.8% to 0.7175 at one point. Citigroup noted that the Australian dollar is usually sensitive to the US dollar and overall risk sentiment, but this rally could continue, with the Australian dollar potentially rising to 75 US cents against the US dollar in the next three months.