The Australian dollar climbed to about US$0.651 on Monday after the Reserve Bank of Australia lowered its cash rate by 25 basis points to 3.60%, the third reduction this year and the lowest level since April 2023. Market participants said the move, which was broadly expected, reinforced views that further policy easing could follow if domestic growth remains subdued. The rise in the Aussie came as the U.S. Dollar Index held just under 98.0, with traders digesting a string of mixed U.S. economic data and the Federal Reserve’s continued dovish rhetoric. While the Fed has signalled it is in no rush to tighten policy, expectations for additional U.S. rate cuts have also faded slightly, tempering broader dollar selling. Against the Japanese currency, the dollar traded modestly higher at around ¥147.1 in late Tokyo dealings. Dealers cited seasonal corporate demand for dollars after the mid-August holiday period and the perception that U.S. inflation remains sticky enough to keep the Fed cautious about sizeable near-term easing.