The Australian dollar advanced after the nation’s central bank held interest rates unchanged for a fifth-straight month.
The world’s fifth-most traded currency rose against 14 of its 16 major peers after Reserve Bank of Australia Governor Glenn Stevens left the cash-rate target at a record-low 2 percent.
Policy makers have toned down calls for a weaker Aussie after the exchange rate dropped in each of the past three months, falling 8.9 percent in its steepest quarterly depreciation for more than two years. Swaps traders have been betting the RBA will be forced to lower rates in the coming year as growth slows in China, Australia’s biggest trading partner, even as Stevens has signaled he is reluctant to ease policy again.
The Aussie rose to 70.99 U.S. cents as of 2:33 p.m. in Sydney, from about 70.85 just before the RBA decision. The currency dropped to a six-year nadir of 68.96 cents on Sept. 7, before climbing to a one-month high of 72.80 on Sept. 18.