The Australian Dollar has weakened against the Pound and fallen against the majority of its most traded peers after the Reserve Bank of Australia kept the nation’s interest rates on hold and said that there is more room for the currency to decline.
The ‘Aussie’ was trading at 1.653 against the Pound
The Bank decided to maintain its interest rate at the record low level of 2.75%, a decision widely expected by economists. Alongside the interest rate decision the Bank released a statement which once more noted the slowdown being witnessed in the Australian economy. The RBA’s governor Glenn Stevens added that the Australian Dollar remains at a high level.
“The Australian dollar has depreciated by around 10% since early April, although it remains at a high level,” RBA Gov. Glenn Stevens said in a statement. “It is possible that the exchange rate will depreciate further over time, which would help to foster a rebalancing of growth in the economy.” He also reiterated that, “the inflation outlook … may provide some scope for further easing, should that be required to support demand.”
Against the US Dollar the ‘Aussie’ tumbled close to a three year low.
The sharp fall came as investors favoured the US currency over increased speculation that the US Federal Reserve will choose to taper its monetary stimulus programme sooner rather than later.
“Expectations on the Fed’s policy will probably go back and forth, depending on upcoming economic numbers. Still, it seems reasonable to think U.S. bond yields are gradually rising, which should underpin the dollar,” said a trader at a Japanese bank.
Against the New Zealand Dollar the ‘Aussie’ weakened after the smaller Oceanic nation was aided by improved commodity prices.
Current Australian Dollar (AUD) Exchange Rates
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9207
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7055
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6047
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4172
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.8479
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0860
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.6536
Correct as of 09:45 am GMT
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