SINGAPORE, Dec 5 Reuters The U.S. dollar regained some ground on Tuesday and hovered near a oneweek high against a basket of currencies, while the Australian dollar fell after its central bank left interest rates unchanged.
The Aussie was last down 0.63 at 0.6578 after the Reserve Bank of Australia RBA kept rates at a 12year high of 4.35 on Tuesday, as widely expected, and noted that economic data received since November had been broadly in line with forecasts.
That left the Antipodean currency some distance away from Monday39;s fourmonth top of 0.6690, which it hit on the back of the U.S. dollar39;s decline over the past few sessions.
The Aussie has had a great run in recent weeks and was arguably overbought over the nearterm, said Matt Simpson, senior market analyst at City Index.
So we may be seeing a combination of profittaking following the fact of the RBA39;s hold, and the closure of preemptive bets that the RBA may have delivered a more hawkish statement.
The decline in the Aussie also dragged the New Zealand dollar slightly lower, with the kiwi last down 0.25 to 0.6152.
Elsewhere, the greenback held broadly steady, keeping the euro pinned near a threeweek low hit on Monday. The single currency last traded at 1.0835.
Sterling was little changed at 1.2628, some distance away from its recent threemonth high, while the dollar index stood near a more than oneweek high and was last at 103.61.
Analysts said the greenback39;s move higher was in part due to a…