Aussie shares trim losses but higher rates here to stay
The S&P/ASX200 fell 16.6 points, to close 0.19 per cent lower. -AAP Image
Australia's share market has pared some of its early losses after falling to its lowest level in a month with a Reserve Bank rate hike and ongoing conflict in the Persian Gulf gutting investor confidence.
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The S&P/ASX200 fell 16.6 points on Tuesday, down 0.19 per cent, to 8,680.5, as the broader All Ordinaries lost 20.5 points, or 0.23 per cent, to 8,903.3.
Already sticky inflation, further pressured by the Middle East energy crisis, prompted the RBA board to hike the cash rate to 4.35 per cent, unwinding all of 2025's cuts in just three meetings and weighing on equities.
The Australian dollar is buying 71.40 US cents, falling from 71.97 US cents on Monday at 5pm, as risk sentiment deteriorated amid resurgent US-Iran conflict as the two nations grapple for control of the Strait of Hormuz.
