Corporate foreign exchange news

Aussie slides in global forex trading

Tuesday, 02 February 2010 09:09:49 GMT

Published by Jamie Jemmeson
The Australian dollar dipped during global foreign exchange trading this morning (February 2nd) after an unanticipated announcement from the Reserve Bank of Australia (RBA).
Following its latest monthly policy meeting, the RBA announced that it is to leave interest rates unchanged this month, breaking a record run of three consecutive hikes.
In the wake of the collapse of Lehman Brothers, the central bank acted swiftly to bring the cash rate down, lopping off a record 425 basis points in a series of cuts.
However, with the Australian economy proving remarkably resilient to the ensuing economic crisis, the RBA was emboldened to raise rates in October 2009, and it followed with two more 25 basis-point hikes which brought the cash rate to 3.75 per cent at the end of the year.
After breaking for January, many analysts had been expecting a similar hike this week, and the decision to keep rates unchanged sent the Australian dollar tumbling during global forex trading today.
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