THE Australian dollar has closed higher, climbing back above 104 US cents as the turmoil in Cyprus prompted fresh buying of the local currency.
Westpac chief currency strategist Robert Rennie said the Australian dollar represented something of a relative safe haven for investors looking to park their money amid difficult times in Europe.
At 5pm, the local unit was trading at 104.26 US cents, up from yesterday's local close of 103.73 US cents.
The Australian dollar broke through 104 US cents during the overnight offshore session, as the European Central Bank set a deadline of Tuesday for Cyprus to agree to a rescue plan.
The currency also gained ground against the euro - at 5pm it was at 80.90 euro cents, up from 80.13 euro cents previously.
Mr Rennie said the Australian dollar became an attractive investment option for market players during the second half of 2012, given the global jitters and the relative strength of the domestic economy.
