The Australian dollar declines despite the interest rate decision

The Australian dollar fell during trading on Tuesday despite an expected decision by the Australian Central Bank regarding its monetary policy.

On Tuesday, the Reserve Bank of Australia (the Central Bank) announced a raise in the interest rate by 25 basis points from 4.10% to 4.35%, in a move that markets expected as part of the bank’s efforts to control inflation.

In terms of trading, the Australian dollar fell against its American counterpart by 22:00 GMT by 0.1% to 0.6429.

Canadian dollar

The Canadian dollar fell against its US counterpart by 22:00 GMT by less than 0.1% to 0.7261.

U.S. dollar

The dollar index rose by 22:50 GMT by 0.3% to 105.5 points, recording the highest level at 105.7 points and the lowest level at 105.2 points.

Neil Kashkari, head of the Federal Reserve Bank in Minneapolis, said that the continued acceleration of economic activity at the current pace calls into question the extent of tightening monetary policy, explaining that he does not see much evidence of a slowdown in the economy at the present time.

It should be noted that an opinion poll showed that the Federal Reserve tends to hold the interest rate unchanged at the next December meeting, but the probability rate reached 90.5% compared to about 97% in the probability of holding the interest rate at its last meeting.