Aust dollar hovers near US90c

Local currency rises modestly after optimistic Bank of England report.

The Australian dollar is higher after a Bank of England (BoE) report sparked optimism about the British economy.

At 0630 AEST, the local unit was trading at 90.00 US cents, up from 89.64 cents on Wednesday.

In its quarterly inflation report, the BoE said it would not raise its interest rate until unemployment fell below seven per cent, from the current level of 7.8 per cent.

The forward guidance was a major break from normal BoE policy.