Australian central bank intervention increases exchange rate volatility, impacting market uncertainty.
The Australian central bank has been intervening in the foreign exchange market since 1983. They tried to influence the Australian dollar's value and volatility. From 1997 to 2001, their interventions helped slow down the Australian dollar's drop. However, these interventions also made the exchange rate more unpredictable. Overall, the central bank's actions had a small impact on the Australian dollar's value and volatility.