The Reserve Bank of Australia (RBA) on Tuesday left its key interest rate steady at a record low of 2.5 percent, as expected, and said the Australian dollar remains "uncomfortably high."
In a statement following its final monetary policy meeting of the year, the RBA said the economy needs a weaker currency and that its sees below-trend growth continuing in the near term.
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The Australian dollar, also known as the Aussie dollar, fell in response to the statement. It last traded at about $0.9084 to the U.S. dollar, down almost 0.25 percent on the day and within sight of last week's near three-month trough.
"For some time, they've been upping the ante on the Australian dollar being too high," said Shane Oliver, head of investment strategy and chief economist at AMP Capital Investors in Sydney.