AUD Rose After RBA Held Rates

The Australian dollar rose sharply by more than one US cent after the RBA kept the cash rate on hold at 2% and toned down its rhetoric on the need for the currency to fall.

Shortly after 4pm, the currency was worth US73.77c, up from US72.64c at the start of the day as the RBA governor Glenn Stevens signalled the end of a long campaign to talk down the local unit’s value.

Over the past year Stevens has consistently said that it was “both likely and necessary” for the Australian dollar to depreciate.

But on Tuesday he softened the rhetoric in his statement following the RBA’s monthly board meeting on monetary policy, and simply noted that the dollar has “adjusted to significant falls in commodity prices”.

via The Guardian

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