The Reserve Bank of Australia has indicated that there is further scopre for interest rate cuts as the Australian dollar rises against the lboal currencies.

The country's central bank noted that a cut in cash rate has helped control the currency, which was high against other currencies. It said that the surprise cash rate cut in May to 2.75 per cent might have resulted in the fall of the exchange rate but added that it still remains high compared to the fall in export prices during the previous year.

"It was possible that the exchange rate would depreciate further over time as the terms of trade declined, which would help to foster a rebalancing of the economy," the central bank said after the meeting.

The Australian national currency started diclining in the previous month when the budget was announced and has since eased 8 per cent. Experts say that the dollar still remains high The Australian dollar was trading at 95.26 US cents this morning in the markets and fell 0.3 cent after the RBA's minutes were released.