THE Australian dollar rose after investors interpreted the Reserve Bank of Australia minutes as suggesting there was less chance of another rate cut in August.
At 6.30am AEST the local unit was trading at 92.54 US cents, up from 91.82 cents at yesterday's local close.
In the minutes of its July meeting, released yesterday, the RBA said it decided to leave the cash rate on hold at the record low of 2.75 per cent as it assessed the effects of earlier interest rate cuts as well as the falling, but still high, Australian dollar.
The local currency rallied on the news, as some investors interpreted the RBA comments as suggesting the prospect of further interest rate cuts was diminishing.
Source:
http://www.theaustralian.com.au/business/markets/rba-minutes-fuel-australian-dollars-rise/story-e6frg94o-1226680504249
