The Australian dollar fell to around $0.71, easing from four-year highs after the Reserve Bank delivered a widely expected 25bp hike to 4.35%, while leaving the prospect of further tightening uncertain. In an eight to one vote, the central bank raised the cash rate for a third consecutive meeting, returning it to levels last seen at the peak of the post-pandemic inflation surge. The decision marked a more hawkish stance than the split seen in March, though policymakers signaled that monetary policy is now “well placed to respond to developments,” hinting at a possible pause ahead. Markets now see only a low chance of another near-term move, though a further increase toward 4.60% by September remains fully priced. Still, the Aussie remained under pressure as a jump in oil prices weighed on risk sentiment and boosted safe-haven demand for the US dollar. Energy markets continued to be disrupted by escalating Middle East tensions and concerns over supply routes in the Strait of Hormuz.