Aussie at 1-Year Low as Central Bank Signals Rate Cut Possible

The Australian dollar dropped to its lowest level in a year against the U.S. currency as a statement by the Reserve Bank of Australia suggested an easing of inflation pressures may pave the way for an interest-rate cut.

The Aussie slid for a third day against the yen as traders priced in an 82 percent chance the central bank will cut interest rates by one-half percentage point to 4.25 percent by November. New Zealand’s currency also fell against the U.S. dollar as global stocks dropped, damping demand for assets linked to growth.