Australia’s dollar fell for a second day after the Reserve Bank cut its benchmark interest rate by a quarter percentage point to 2.75%. The decision was predicted by eight of the 29 economists surveyed by Bloomberg.
The central bank “judged that a further decline in the cash rate was appropriate to encourage sustainable growth in the economy,” Governor Glenn Stevens said in a statement. “Recent data on prices confirm that inflation is consistent with the target and, if anything, a little lower than expected.”
The so-called Aussie slid 0.9% to $1.0162 after declining to $1.0165, the weakest level since March 4.
The krona strengthened against all it 16 major counterparts as the industrial-production data reduced pressure on the central bank to lower interest rates.
Production was unchanged in March from a year earlier, compared with an estimated 0.5% decline in a Bloomberg survey. Orders jumped 11.2% from a year earlier. The data support the central bank’s economic growth forecast of 0.3% in the first quarter, according to Nordea Bank AB.
The krona appreciated 0.6% to 6.5107 per dollar and gained 0.3% to 8.5378 per euro.
Copyright 2014 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.