Australian dollar rises after rate cut The Australian dollar rose against other major currencies on Tuesday even after Australia's central bank cut interest rates, as traders said the 25 basis point reduction had been priced in to the markets. The Aussie rose 0.3 per cent to a session high of $1.0459 against the US dollar after the Reserve Bank of Australia cut rates to 3 per cent, still leaving the country with the highest official rates of any developed nation. Currency traders suggested that the rise in the Australian dollat was due to concerns the RBA could have cut rates further, by 50 basis points. The euro rose 0.3 per cent against the US dollar to a session high of $1.3076 in Asian trading, initially supported by hopes that Greece's debt restructuring, announced the previous day, would be successful. It came off its highs as European markets opened and was later flat at $1.3060. The euro continued to climb against the Swiss franc after Credit Suisse, Switzerland's second-largest bank, had said the previous day it would levy a charge on certain deposits. The euro rose 0.1 per cent to touch SFr1.21. The dollar fell against other major currencies on Tuesday amid concerns over the US fiscal cliff, after a Republican proposal to avert an upcoming combination of spending cuts and tax rises that threatens to derail the US economic recovery was rejected by the White House. The Canadian dollar was firmer ahead of an interest rate decision by the Bank of Canada that was expected to keep the country's rates on hold at 1 per cent. The US dollar fell 0.1 per cent to C$0.9938. Currency investors were preparing to watch the Bank of Canada's statement closely for a change in tone, after what was interpreted as a more hawkish signal in its last statement caused the Canadian dollar to strengthen. But analysts said the so-called "Loonie" was likely to remain more sensitive to global macro developments. "Other than during the 10-minute window of press release analysis, the Canadian dollar is likely to continue to trade on global risk-on/risk-off more than monetary policy," said Greg Anderson, currency strategist at Citigroup.