Aust dollar holds above US92c

Currency rallies as RBA minutes point to diminishing chance of August cut.

The Australian dollar is higher after investors interpreted the Reserve Bank of Australia minutes as suggesting there was less chance of another rate cut in August.

At 0630 AEST, the local unit was trading at 92.54 US cents, up from 91.82 cents on Tuesday.

In the minutes of its July meeting, released yesterday, the RBA said it decided to leave the cash rate on hold at the record low of 2.75% as it assessed the effects of earlier interest rate cuts as well as the falling, but still high, Australian dollar.

The local currency rallied on the news, as some investors interpreted the RBA comments as suggesting the prospect of further interest rate cuts was diminishing.

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