PERTH: The Australian dollar weakened from recent highs against the other major currencies in the Asian session on Tuesday, after the Reserve Bank of Australia revealed through the minutes of its July meeting that developments in Greece and China are likely to influence future interest rate decisions.
The RBA minutes noted that despite fluctuations in markets associated with the respective developments in China and Greece, long-term borrowing rates for most sovereigns and credit worthy private borrowers remain remarkably low.
“Information to be received over the period ahead on economic and financial conditions would continue to inform the Board’s assessment of the outlook and hence whether the current stance of policy remained appropriate to foster sustainable growth and inflation consistent with the target,” the minutes said.
At the meeting, the RBA maintained its key interest rate at the record low 2.00% for the second straight month. The bank had lowered the rates by 25 basis points each in February and May. However, the members are comfortable with the benchmark lending rate where it is, although they did not absolutely rule out another rate cut – instead calling the prospect data dependent.
Monday, the Australian dollar fell against its major rivals, hurt by weakness in commodities, particularly gold. The Australian dollar fell 0.01% against the US dollar, 0.12% against the yen, 0.16% against the euro, 0.14% against the Canadian dollar and 0.79% against the NZ dollar.
