RBA Weighs On Aussie

The Australian dollar slipped to a three-week low as the central bank looks set to enhance monetary easing.

On the other hand, the Australian dollar dropped 0.3% to $0.7045, hitting a three-week low of $0.7038 on increasing expectations of monetary easing next month by the country’s central bank. Minutes of the Reserve Bank of Australia’s (RBA) last policy meeting confirmed the Board had discussed cutting rates and buying longer-dated debt as a means to support the economy and restrain the currency. The New Zealand dollar fell in sympathy to $0.6578, down 0.4% on the day. In Asian trade, the euro held flat at $1.1767, after a 0.44% gain made on Monday. Sterling also held on to small gains made the previous day at $1.2941. Against the euro, the pound was little changed at 90.88 pence per euro, slowly recovering after hitting a 5- 1/2-month low of 92.90 pence on Sept. 11.