The Australian dollar declined after the Reserve Bank of Australia unexpectedly doubled the size of its bond-buying program and said interest rates would stay at ultra-low levels for at least three more years.

In a “dovish surprise” the RBA said it would buy another $100 billion of bonds – or $5 billion a week – keeping up its fast-paced buying for another six months. Interest rates, the three-year government bond yield and the term funding facility were all pinned at 0.1 per cent for another month.