RBA Hikes to 4.35% as Tensions Rise

Asian currencies were largely unchanged on May 5, 2026, as investors awaited the RBA decision amid Middle East tensions.
The Reserve Bank of Australia lifted its cash rate 25 bps to 4.35%, a third consecutive hike citing inflation and conflict risks.
Oil prices stayed above $100 per barrel after a 6% surge, while the US Dollar Index rose 0.1% on safe‑haven demand.
Analysts expect Asian FX to remain range‑bound as geopolitical risks and central‑bank signals dominate sentiment.