Corporate foreign exchange news

Published by Mark Smith-HalvorsenThe Australian dollar climbed during trading this morning (April 6th) after the central bank voted to bring the cash rate to 4.25 per cent, up 25 basis points.In a statement, Glenn Stevens, governor of the Reserve Bank of Australia (RBA), pointed to further increases as the country looks to bring interest rates back in line with long-term averages.The RBA slashed the cash rate by more than 400 basis points in a series of monthly cuts made in response to the financial crisis, but this month's decision marks the fifth hike made in six meetings.Speaking to Bloomberg, Adam Carr, a senior economist at ICAP Australia in Sydney, said it will be some time before rates return to pre-crisis levels."There's a good case we'll see much stronger than normal growth rates with much higher than normal inflation and I think the RBA is aware of that," he commented.Responding to the announcement, forex dealers pushed the Australian dollar higher in a session that favoured high-yield currencies.For more information on international payments, visit our Smart FX site