Australian dollar firmer despite RBA words on low rates

THE Australian dollar is firmer despite the Reserve Bank governor telling a business dinner that interest rates are likely to stay at record lows for some years.

Aussie one dollar coins, on a twenty dollar note.

THE Australian dollar is firmer despite the Reserve Bank governor telling a business dinner that interest rates are likely to stay at record lows for some years.

At 0630 AEDT on Wednesday, the local currency was trading at 87.29 US cents, up from 87.19 cents on Tuesday.

The unit has risen despite RBA governor Glenn Stevens indicating on Tuesday night that interest rates were likely to stay low for years or until non-mining businesses had the courage to invest again.

He added that the cash rate was likely to stay at a record low of 2.5 per cent as mining investment and income growth fell and household debt and unemployment rose.

“Inflation is well under control and is likely to remain so over the next couple of years,” Mr Stevens told a dinner in Melbourne. “In such circumstances, monetary policy should be accommodative and, on present indications, is likely to be that way for some time yet.”

Originally published as Australian dollar firmer despite RBA words on low rates