AUD falls following Lowe's comments
- FX Market
- 3 months ago
The Aussie dollar has plunged following comments by the Reserve Bank of Australia, pointing to periods of low interest rates.
Governor Philip Lowe stated, “it will be some time before inflation is comfortably back within the target range.”
“It is reasonable to expect an extended period of low interest rates”.
Soon after the comments the AUD fell by 0.3% to $0.6962, taking its losses this week to 1.4% against the USD.
The Reserve Bank of Australia cut interest rates for a second successive month in July to a record low of 1% on concerns that a slowdown in China, a domestic housing slump and weak consumption threaten the country’s record of almost 28 years without experiencing a recession.
Source: Smart Trend Team