The Australian dollar witnessed a strong rise against all eight major currencies during Tuesday's trading, and the AUD/USD pair jumped more than 1% to its highest level in 6 days, due to the decision of the Reserve Bank of Australia today.
This came after the Reserve Bank of Australia surprised the markets a short time ago by raising interest rates by 25 basis points to 3.85%, after which it also hinted in the interest statement that the Monetary Policy Committee may raise interest rates further during the coming period, to control high inflation, which reinforced The Australian dollar pair rose strongly.
The Australian Reserve also indicated that reducing inflation to its target range of 2% - 3% may take about two years, which prompted the monetary policy-making committee to take a decision to raise interest today, in order to reduce inflation within a reasonable period of time, in light of the bank's commitment. Central and its determination to achieve price stability.
In terms of trading, the Australian dollar pair rose by 1.11%, by more than 70 points, to reach 0.67064 US dollars, at exactly 05:20 am GMT.
