Dollar rises, RBA retains interest rate

The dollar climbed on Tuesday morning in Asia but traded below its previous peaks as the Reserve Bank of Australia (RBA) released its latest policy decision earlier today. 

The U.S. Dollar Index that measures the greenback against other major currencies tallied an increase of 0.04% to 93.918 by 11:50 PM ET (3:50 AM GMT).

The USD/JPY pair dropped 0.05% to 113.92.

The AUD/USD pair shed 0.31% to 0.7501, while the NZD/USD pair declined 0.10% to 0.7174.

The USD/CNY pair nudged 0.05% higher to 6.4005, while the GBP/USD pair slid 0.16% to 1.3651.

The RBA retained its interest rate at 0.10% in November following its failure to defend its yield target as bonds sold off during the previous sessions.

Other central banks were seen to decide on their policy setting based on the RBA’s move. The Federal Reserve and the Bank of England will release their policy statements on Wednesday and Thursday, respectively. 

Meanwhile, the Reserve Bank of New Zealand was expected to  follow closely its Antipodean counterpart’s movements in its upcoming policy announcement.