The Australian dollar traded around $0.70, near an eight-week low as investors remained cautious ahead of the Reserve Bank of Australia’s monetary policy meeting. The Aussie finished 1.4% lower last week, its third straight weekly loss and the biggest decline in three months, under pressure from a broadly stronger US dollar and elevated US Treasury yields as the Federal Reserve raised interest rates earlier this month and signaled the possibility of further increases. The losses came despite markets having largely priced in a 25-basis-point rate hike to 4.60% by the RBA on Tuesday. Persistent inflation pressures have strengthened the case for tighter policy, with Governor Michele Bullock recently saying upside inflation risks may be materializing because of high energy prices and persistent domestic excess demand. Meanwhile, oil prices remained above $100 per barrel as uncertainty persisted over whether the US and Iran could reach a truce soon, keeping global inflation risks elevated.