The Australian dollar soared as investors bet that the Reserve Bank of Australia will raise interest rates on Tuesday, taking a hardline stance against the threat of higher inflation.
The currency jumped 1.3 per cent overnight to US70.66¢ ahead of the rate decision at 2.30pm AEDT with the RBA set to be the stand-out in a busy week for central banks. The market and economists have all but priced in a second interest rate rise in Australia to try to keep a lid on inflation.
