The Australian dollar rose against its US counterpart by about 1 percent during trading on Tuesday, to reach the highest level in more than 4 months after the disclosure of the country's monetary policy decision.

Australia's currency gains come after the Reserve Bank of Australia (RBA) kept during its monetary policy meeting today the main interest rate at 0.25 percent, unchanged, according to expectations.

The bank had sharply retracted its bond purchase in May, with financial markets calming and a "Covid-19" infection slowing.

"It is possible that the depth of GDP shrinkage is lower than expected earlier," Australian Central Bank Governor Philip Lowe said in a statement after the meeting.

But he noted that the expected nature and speed of recovery remains largely uncertain, and the epidemic is likely to have long-term effects on the economy.

Lowe explained that the rate of new infections decreased significantly, and that some restrictions were eased earlier than previously expected.

On the other hand, the consumer confidence index in Australia continues to rise for the ninth week in a row.

By 9:41 am GMT, Australia's currency rose against its US counterpart by about 1 percent to $ 0.6867, the highest level since late January.