Aussie hits 18-year high

The Australian dollar reached a fresh 18-year high yesterday as US equity markets slipped on worries about the American sub-prime mortgage market.

But the local unit closed off its earlier highs as the carry trades slowed.

At one point, the local currency was once again trading at its highest level since February 1989 despite an absence of domestic economic data.

The Australian dollar traded between a low of US84.73c and a high of US84.97c, reached shortly before noon.