RBA Aussie Jawboning In Spotlight as U.S. Expressed Concern
- U.S. made comments in September as part of IMF consultations
- Aussie climbs Tuesday after Stevens positive on economy
The Australian central bank’s attempts to talk the local currency lower last year ran afoul of the U.S. Treasury, which chided officials by reminding them of their commitment to a freely floating exchange rate.
The U.S. “expressed concern over the authorities’ public statements on the desired direction of the exchange rate,” during consultations with the International Monetary Fund over Australia in September, it said Monday in Washington. In August, the Reserve Bank of Australia’s monthly policy statement modified its exchange-rate language. After saying currency “depreciation seems both likely and necessary,” in July, Governor Glenn Stevens said the following month, “the Australian dollar is adjusting to the significant declines in key commodity prices.” He said Tuesday Australia has a floating currency.