The Australian dollar jumped to its highest level since mid-May, Tuesday, after the Reserve Bank of Australia unexpectedly raised interest rates.
In the latest trading, the Australian dollar rose 0.73 percent to $ 0.6665, after jumping to $ 0.6677, the highest level since May 16.
The Central Bank of Australia decided to raise interest rates by 25 basis points to 4.1 percent, at the highest level since April 2012, and exceeding the inflation target, which ranges between 2 and 3 percent.
RBA Governor Philip Lowe said that although inflation has passed its peak, there are still indications that inflation will continue.
He pointed out that there may be further tightening of monetary policy in the future in order to control inflation.
On the other hand, the US dollar continued its decline from the highest level in two and a half months, which it reached last week, against major currencies, after unexpectedly weak data for the US services sector, issued yesterday evening, reinforced expectations that the US Federal Reserve would not raise interest at its meeting next week, but that casts a shadow. On monetary policy expectations in the coming months.
The dollar index, which measures the performance of the US currency against six major currencies, fell 0.11 percent to 103.89 after fluctuations for several days that saw it reach a two-and-a-half-month high of 104.70 in the last days of May, to decline after that after US central officials hinted that they might not raise interest in June.
The dollar fell 0.05% to 139.49 yen, the euro rose 0.11% to $1.0722, and the pound sterling rose 0.12% to $1.2450.
