India, Feb. 18 -- The Australian dollar strengthened against other major currencies in the Asian session on Tuesday, following the Reserve Bank of Australia's (RBA) widely anticipated 25 basis point interest rate drop.
The RBA lowered its benchmark rate by a quarter-point as upside risks to inflation eased but policymakers remained cautious on prospects for further policy easing.
The policy board of the RBA governed by Michele Bullock decided to reduce the cash rate target by 25 basis points to 4.10 percent. The decision came in line with expectations.
The interest rate paid on Exchange Settlement balances was cut to 4 percent.
"In removing a little of the policy restrictiveness in its decision today, the Board acknowledges that progres...