LONDON—The Australian dollar jumped to its highest since mid-May on Tuesday after the Reserve Bank of Australia (RBA) raised interest rates, in a decision that many analysts had said would be a close call between a hike and a pause.
The U.S. dollar was steady, below last week’s 2–1/2-month highs versus major peers, after unexpectedly soft U.S. services data on Monday firmed up expectations for a pause at the Federal Reserve’s meeting next week, but clouded the policy outlook for the months ahead.
