Australian dollar dives to six-year low after surprise interest rate cut

The Aussie dropped as far as $0.7665, from $0.7790, to show a loss of 1.7 per cent for the day. -- PHOTO: BLOOMBERG
The Aussie dropped as far as $0.7665, from $0.7790, to show a loss of 1.7 per cent for the day. -- PHOTO: BLOOMBERG

SYDNEY (Reuters) - The Australian dollar tumbled more than a cent to a six-year low on Tuesday, after the Reserve Bank of Australia (RBA) cut interest rates to a record low of 2.25 per cent.

The Aussie dropped as far as $0.7665, from $0.7790, to show a loss of 1.7 per cent for the day. It was last at $0.7674.

The RBA reduced the benchmark cash rate from 2.5 per cent - already a historic low - in its first cut since August 2013, surprising many analysts.