RBA unwinds Australian dollar holding

The bank sold A$486 million in January as part of an unwinding of the huge holding of Aussie dollars it accumulated during a defence of the currency in 2001. The Aussie slipped from $0.64 in January 2000 to an all-time low of $0.475 in April 2001. It has since risen to around $0.59.

"The RBA took on about A$2 billion of currency buying when defending the currency, and it allowed currency reserves to run down," said Karen Pringle, senior currency strategist at ANZ Investment Bank in London.

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