The Australian dollar dropped today after the Reserve Bank of Australia maintained its cash rate unchanged and reiterated that lower interest rates are possible in the future.
The RBA kept its benchmark interest rate at 2.75 percent today. The bank commented on the strength of the Aussie:
The exchange rate has depreciated since the previous Board meeting, although, as the Board has noted for some time, it remains high considering the decline in export prices that has taken place over the past year and a half.
The RBA also mentioned that “the inflation outlook, as currently assessed, may provide some scope for further easing”.
AUD/USD declined from 0.9768 to 0.9664 as of 12:44 GMT today. AUD/JPY fell from 97.20 to 96.78.
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