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Central bank buys Australian dollars amid plunge

Central bank buys Australian dollars amid plunge

Australia's central bank has been buying Australian dollars to provide the market with certainty and liquidity amid a plunge in the currency's value, a bank spokesman said Monday.
The Reserve Bank of Australia "acted to provide liquidity to the market on Friday night and again this morning," the spokesman said on condition of anonymity because of bank policy.
He declined to say how much the bank had spent on the interventions.
Earlier this year, the Australian dollar reached 25-year highs against the U.S. dollar and appeared to be approaching parity until the global financial crisis sent it plummeting in the past three months.
It fell to $0.6055 on Friday, and was trading at about $0.62 on Monday.
The spokesman said the bank did not have a preferred rate for the dollar.
"It's not so much aiming at defending any particular figure as much as providing some certainty to the market and some liquidity to the market, to the extent that's possible," he said.
The bank has intervened very rarely to support the currency _ in September 2007, and in 2001 when the Australian dollar fell below $0.50.


Updated : 2021-03-02 23:23 GMT+08:00