The Australian dollar has fallen in late trade, following an earlier lift as the Reserve Bank of Australia upgraded its growth and inflation forecasts.
At 1650 AEDT, the Australian dollar was trading at 89.42 US cents, down from 89.60 US cents yesterday.
It lifted to 89.71 US cents after the release of the RBA statement, before reversing its gains.
The local currency hit a high of 89.75 US cents and a low of 89.21 US cents during the day's trade.
National Australia Bank senior currency strategist Emma Lawson says traders were buoyed by the RBA's comments that inflation was on track and would be consistent with its two to three per cent target over the coming few years.
"The market was initially encouraged by the outlook for inflation," she said.
"But the RBA didn't change much of the wording on the currency from what they said on Tuesday (at its interest rate meeting) and it's now drifting lower from that initial spike."
