Australia and New Zealand dollars ease; RBA concerned over inflation threats

Australian and New Zealand Currencies Slip as US Dollar Strengthens

On Tuesday, both the Australian and New Zealand dollars experienced slight declines as the US dollar gained momentum. The Reserve Bank of Australia (RBA) indicated that it may consider raising interest rates again, though it made no firm promises. According to the minutes from the RBA’s most recent meeting, policymakers noted a significant change in inflation risks, which prompted their decision to increase the cash rate to 3.85% by a quarter of a percentage point. While the board remains unsure if additional rate hikes will be necessary, it emphasized that inflation has exceeded its target for three consecutive years and that financial conditions remain relatively loose.