Aussie Dollar Hits Two-Month Low as Rate Rise Bets are Trimmed

The Australian dollar has hit a two-month low after traders reduced their expectations of further interest rate rises by the Reserve Bank of Australia.

Following a speech by RBA governor Michele Bullock, investors scaled back their bets on higher rates, causing the Aussie dollar to fall to US69.88¢.

This level was last seen in late July and represents a 2.5% decline for the currency this month alone.

The rate-sensitive three-year government bond yield dropped by 7 basis points to 4.97%, while the 10-year rate lost 4 basis points, moving away from its 15-year high of 5.43%.