Australian Dollar Drops Against All Majors After RBA Cut Rates
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Australia’s dollar dropped against all of its 16 major peers after the country’s central bank cut interest rates by 25 basis points today.
The so-called Aussie dropped to the lowest in more than three weeks against its U.S. counterpart after the Reserve Bank of Australia lowered its benchmark rate to 3.25 percent, the lowest level since 2009. Only nine of 28 economists surveyed by Bloomberg predicted the cut. Swaps markets indicated before the RBA announcement that there was a more than 70 percent chance of a reduction in the cash rate target, according to data compiled by Bloomberg.