The Australian dollar rallied today following the monetary policy statement from the Reserve Bank of Australia. The central bank did not change its policy, and the statement did not say anything particularly new, but also did not mention a possibility of an additional interest rate cut.
The RBA left its main interest rate at 2 percent at today’s meeting, saying:
Having eased monetary policy last month, the Board today judged that leaving the cash rate unchanged was appropriate at this meeting.
Regarding the currency’s performance, the statement said:
The Australian dollar has declined noticeably against a rising US dollar over the past year, though less so against a basket of currencies. Further depreciation seems both likely and necessary, particularly given the significant declines in key commodity prices.
AUD/USD climbed from 0.7604 to 0.7683 and AUD/JPY rallied from 94.90 to 95.81 as of 12:47 GMT today.
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