Reserve Bank of Australia and Bank of Japan

money market: On Tuesday, the Reserve Bank of Australia decided to lower the cash rate imposed on overnight loans in the money market by 0.25 percentage point to a record low of 1.75 percent, according to The Japan Times. Meanwhile, market watchers attributed the U.S. dollar fall against other major currencies to the prospect that a U.S. interest-rate hike this summer remained remote after manufacturing data from the world leading economies. The yen rise in Sydney followed a surprise interest rate cut by Australia central bank. The recent surge in the yen value is likely to adversely affect major export-driven Japanese firms, possibly giving rise to pressure on the government and the Bank of Japan to take measures to keep the yen lower and thereby prop up the domestic economy. It has jumped about 5 percent in the four trading days since the central bank, led by BOJ Gov. The yen climbed a fourth day, strengthening as much as 0.3 percent to 106.05 per U.S. dollar, its strongest level in 18 months. (news.financializer.com). As reported in the news.