Dollar edges down

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TOKYO: The dollar edged down slightly in Asian trading on Tuesday, while the Australian dollar soared after central bank minutes reduced expectations of an interest rate cut.

The Aussie was already bolstered by a rebound in crude oil futures.  U.S. crude hit a six-month high, as the market focused on supply disruptions that prompted long-time bear Goldman Sachs to issue a more bullish assessment.

Minutes of the Reserve Bank of Australia´s (RBA) May policy meeting, at which policymakers reduced the cash rate by a quarter point to a record low 1.75 percent, were less dovish than some had anticipated.  The Aussie was up 0.8 percent at $0.7349 after rising as high as $0.7368, pulling decisively away from a two-and-a-half month low of $0.7236 plumbed in the previous session. "The fact that they discussed waiting for more info before cutting in May suggests there is a very low chance of an early follow up, and the chance (of a rate cut) in August should be reduced," said Shinichi Kashiwagi head of market sales for Japan at National Australia Bank in Tokyo.

Use of the word "persuaded" in the minutes suggests some members needed to be convinced that an easing would improve prospects for sustainable growth and inflation returning to target over time, he said.