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Australia Holds Rate as Currency Drop Offers Export Support

  • Currency falls to lowest level this year amid trade ructions
  • Benchmark rate has been on hold for almost two years
Images Of Australian Dollar As RBA Assistant Governor Says Aussie Supported By Resource Investment Inflows

Photographer: Ian Waldie/Bloomberg

Updated on

Australia left its key interest rate unchanged at a record low Tuesday as the currency’s recent decline aids the economy by offering exporters some insulation against global trade ructions.

Reserve Bank Governor Philip Lowe kept the cash rate at 1.5 percent, as expected by all economists and where it’s stood since August 2016. The Australian dollar this week dropped to its lowest level in more than a year, driven by increasing anxiety that a trade war could send shock waves through commodity markets that the nation depends upon.