THE dollar received a fillip yesterday after a top Reserve Bank official said financial markets had misinterpreted comments by governor Glenn Stevens that seemed to indicate another rate cut was imminent.
Philip Lowe, deputy governor of the RBA, said the off-the-cuff remarks by Mr Stevens during a speech on Wednesday that policymakers had deliberated for a "very long" period before holding rates steady this week did not indicate that the bank was about to cut again.
"Some people in the financial markets and press misinterpreted the intention of those remarks," Mr Lowe said after delivering a speech in Sydney.
"The board always deliberates for a very long time."
The central bank on Tuesday left its cash-rate target at a record low of 2.75 per cent for the second month, having cut seven times since late 2011.
Mr Lowe's comments sent the dollar, the world's fourth most-traded currency, 40 points higher to a session high of US91.33c, compared with US90.77c late on Wednesday.
