RBA cuts interest rates for second time this year
Local dollar rallies after initial drop as investors wonder whether easing cycle might now be over
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Sydney
AUSTRALIA'S central bank cut interest rates for the second time this year on Tuesday, seeking to buttress the economy against sliding mining investment while heading off a harmful increase in the local dollar.
The currency did initially drop after the Reserve Bank of Australia (RBA) trimmed its cash rate a quarter point to a fresh all-time trough of 2.0 per cent. Yet it soon rallied as investors wondered whether the easing cycle might now be over.
