Australian dollar inches higher as RBA alleviates currency talk
October 7, 2014 7:52 am
The Australian dollar leaped following the Reserve Bank of Australia eased its language on the exchange rate being overvalued.
On Tuesday, the Aussie traded at 87.72 US cents, up from Monday’s 87.05 US cents. It was at 69.53 euro cents, previously 69.50 euro cents.
Against the Japanese yen, the currency traded at ¥95.26 from ¥95.29 Monday.
The Australian dollar has dropped almost eight US cents since the RBA’s last meeting in September, from 94 US cents to 86.43 US cents, its weakest since July 2010.
Australia’s central bank retained the cash rate at its record low of 2.5% Tuesday, the rate since August 2013.
RBA Governor Glenn Stevens appeared dissatisfied with the currency’s recent drastic decline and said it remained high by historical standards.
“But his language had softened since September, when he said the exchange rate remained above most estimates of its fundamental value”, said Joseph Capurso, Currency Strategist at Commonwealth Bank.
The material has been provided by InstaForex Company – www.instaforex.com
The Australian dollar leaped following the Reserve Bank of Australia eased its language on the exchange rate being overvalued.
On Tuesday, the Aussie traded at 87.72 US cents, up from Monday’s 87.05 US cents. It was at 69.53 euro cents, previously 69.50 euro cents.
Against the Japanese yen, the currency traded at ¥95.26 from ¥95.29 Monday.
The Australian dollar has dropped almost eight US cents since the RBA’s last meeting in September, from 94 US cents to 86.43 US cents, its weakest since July 2010.
Australia’s central bank retained the cash rate at its record low of 2.5% Tuesday, the rate since August 2013.
RBA Governor Glenn Stevens appeared dissatisfied with the currency’s recent drastic decline and said it remained high by historical standards.
“But his language had softened since September, when he said the exchange rate remained above most estimates of its fundamental value”, said Joseph Capurso, Currency Strategist at Commonwealth Bank.
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: