Aussie shares set another record on back of rates hype

The local share market has finished January at its highest ever level, eclipsing its previous record from eight weeks ago.

The market has surged on hopes the Reserve Bank will deliver a long-awaited interest rate cut in February.

The benchmark S&P/ASX200 index on Friday closed up 38.6 points, or 0.45 per cent, to 8,532.3, breaking its previous record close of 8,495.2 from December 3.

The broader All Ordinaries climbed 43.8 points, or 0.5 per cent, to 8,789.7.

The ASX200 rose 1.5 per cent for the week, its best performance in six weeks.

It gained 4.6 per cent for January, its best month since a 7.1 per cent rise in December 2023.

The Australian dollar was buying 62.23 US cents, from 62.21 US cents at close of business Thursday.