The Reserve Bank of Australia noted it is set to implement changes to policy measures in order to spur development and control inflation. Australian government bonds fell after the policy meeting adjourned on Tuesday.
"The RBA has made very clear that the move we've had in the currency to date doesn't have a significant impact in terms of their medium-term inflation outlook," currency strategy global co-head Ray Attrill with National Australia Bank Ltd. told the media outlet on Tuesday. "As far as they're concerned, it's 'bring it on' with respect to a still-weaker Aussie dollar."
The Aussie rose as much as 0.6 percent against the U.S. dollar and 0.7 percent against the Japanese yen. Glenn Stevens, governor of the Reserve Bank of Australia, said exchange rates are poised to continue diving.
The Reserve Bank of Australia cut interest rates by a quarter-point to 2.5 percent, according to Reuters. That spurred the Aussie's climb from its lowest level in about 36 months against the world's reserve currency, which it touched on Monday.
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