Aussie dollar rises as RBA keeps rate unchanged

London

THE Australian dollar gained over one per cent against the US dollar on Tuesday - heading for its biggest daily rise in more than two weeks - after the Reserve Bank of Australia surprised many investors by refraining from an interest rate cut.

The Aussie rose to US$0.7711, its highest in a week, from around US$0.76 before the decision, extending its recovery from a six-year trough of US$0.7534 set on Thursday. It was last trading at US$0.7685, up 1.2 per cent on the day.