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2026.06.2901:34:16UTC+00Australian Dollar Hits Fresh 3-Month Low

The Australian dollar extended its decline below $0.690, touching a new three‑month low as renewed tensions in the Middle East dampened risk appetite. The US and Iran agreed to pause hostilities and resume peace talks over the Strait of Hormuz dispute, following several days of strikes and counterstrikes on vessels in the Gulf last week.

Oil prices climbed, rekindling inflation concerns, while the safe‑haven US dollar stayed firm, underpinned by expectations of further interest rate hikes by the Federal Reserve.

At the same time, the Reserve Bank of Australia on Monday detailed the policy tools it could use in future economic or financial crises, pointing to bond purchases, forward guidance, and liquidity measures as options should borrowing costs return to very low levels.

Market focus now shifts to Tuesday’s release of the minutes from the RBA’s latest policy meeting. At its June meeting, the central bank kept the cash rate unchanged at 4.35% after delivering three rate hikes earlier this year.

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