Australian dollar hits fresh 24-year high

The Australian dollar hit a fresh 24-year high on Tuesday after official documents showed the central bank was more hawkish on interest rates than previously thought.

The currency hit 95.9 US cents after the release of minutes from this month's Reserve Bank of Australia monetary policy meeting, when rates were left on hold at a 12-year high of 7.25 percent.

Markets had taken the lack of action as a sign that rates were likely to remain on hold for the rest of the year.

But the minutes stated: "Members spent considerable time discussing the case for a further rise in the cash rate."

Economists said the minutes showed the central bank was poised to pull the interest rate trigger at the first indication that inflationary pressures were increasing.

"Any sign the domestic (demand) side of things picks up, you'll see a rapid interest rates response," Commonwealth bank chief economist Michael Blythe said.

The Australian currency later Tuesday eased to 95.86 US cents in late afternoon trading.

The Australian dollar's highest level against the greenback since the currency was floated in 1983 was 96.53 US cents, reached on March 16 1984.