Market News
Australian pension fund UniSuper says local currency undervalued, increases hedging - REUTERS
Summary
- UniSuper says rate differential swinging in Aussie's favour
- CIO says stronger commodities also underpin Aussie strength
- ART, HESTA have also increased hedging to limit USD exposure
SYDNEY, Feb 20 (Reuters) - One of Australia's largest pension funds, UniSuper, has increased hedging of its overseas investments as it says the local currency is undervalued and will rise as the interest rate differential between Australia and the U.S. widens.
The Aussie dollar was trading at $0.7056 on Friday, down from this month's three-year top of $0.71465 but well up from the low of $0.6422 in November, when the currency started its climb.




