The Australia dollar has jumped on news Scott Morrison has won the ballot to become Australia's next prime minister.
It moved sharply higher to 72.85 US cents when the former treasurer's victory was confirmed at about 1250 AEST.
It had been trading between 72.39 and 72.506 US cent ahead of the Liberal party room vote.
Investors have sold the Aussie down over the past two days as uncertainty over Australia's political leadership cast doubt on future policy direction.
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Ahead of the vote economists had forecast a win for Mr Morrison would be a positive for the local currency.
Rakuten Securities Australia chief operating officer Nick Twidale said a victory in the Liberal party room vote for Peter Dutton as new PM would most probably result in further downside for the Aussie dollar.
"He represents a move to the party's right and what many see as a more likely loss at the next general election," Mr Twidale said in a statement.
"If the one of the more moderate alternatives in Scott Morrison or Julia Bishop take over then we'll likely see a bit of a relief rally back towards 0.7300 for the beleaguered currency, which saw its biggest loss in a year yesterday."
