Australia’s central bank left its cash rate unchanged at 4.35 per cent on Tuesday, extending a pause as it weighs persistent inflation against signs of weaker economic activity

Asian currencies were largely subdued on Tuesday, while the Australian dollar remained firm after the Reserve Bank of Australia kept rates unchanged as expected.

Australia’s central bank left its cash rate unchanged at 4.35 per cent on Tuesday, extending a pause as it weighs persistent inflation against signs of weaker economic activity.

The RBA has raised rates three times this year to contain inflation, which remained above its 2 per cent-3 per cent target despite easing to 3.8 per cent in June. The latest decision came after second-quarter underlying inflation undershot forecasts, reducing pressure for another hike.

The Board will continue to do what it considers necessary to bring inflation sustainably back to target, including increasing the cash rate target further if upside risks materialise, the RBA said in a statement.

The Australian dollar’s AUD/USD pair traded largely flat.

The yen’s USD/JPY pair steadied around 159.23 yen after climbing 1 per cent in the previous session.

The currency has surrendered nearly half of the gains made after an intervention helped lift it from a 40-year low of 163.99, while leaving investors wary of further official action.

Japanese markets were closed for a holiday, leaving trading thinner than usual.

The won’s USD/KRW pair edged 0.2 per cent lower, while the Singapore dollar’s USDSGD traded flat.

The yuan’s onshore USD/CNY and offshore USD/CNH pairs were muted.

The Indian rupee’s USD/INR pair ticked up 0.1 per cent.

The US Dollar Index traded unchanged at 99.81 by 05:05 GMT after adding 0.3 per cent in the prior session.