The Australian dollar sank today, reaching a new multi-year low against its US peer, after the Reserve Bank of Australia held its monetary policy meeting. The central bank made no surprises to the market, keeping its policy steady.
As was expected, the Aussie could not hold ground for long. The RBA kept its main interest rate at 2 percent and released a relatively neutral statement. Yet it said regarding the currency:
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 crashed from 0.7497 to 0.7434 as of 10:559 GMT today, trading near the lowest level since May 2009. AUD/JPY tumbled from 91.88 to 91.08.
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