Investigation into wild trading of Australian dollar

The Australian Securities and Investment Commission (ASIC) launched an investigation on Wednesday into Tuesday's trading of the Australian dollar.

Buyers plunged on the Australian dollar seconds before an announcement by the Reserve Bank of Australia (RBA) that it was not changing interest rates, local media outlets reported.

The dollar shot up from 76.35 U.S. cents to 77.12 U.S. cents in minutes, eventually falling back to 76.99 U.S. cents.

It was the third month in a row there have been plunges on the Australian dollar seconds before an RBA interest rates announcement.

On Wednesday, it was at 76.35 U.S. cents.

ASIC fears someone at the RBA is leaking information to the market before the timed announcements.

"ASIC confirms it will investigate a spike in the Australian dollar shortly before the Reserve Bank's monetary policy decision today," it said in a statement.

"The investigation will look at trading in the dollar prior to the RBA's interest rate decision statement at 2:30 p.m. (Tuesday).

"ASIC is also investigating foreign exchange movements shortly before the RBA's announcements in February and March 2015."

The RBA left the Australian cash rate on hold on Tuesday at 2. 25 percent.

The RBA has previously indicated it wants the Australian dollar to rest at 75 U.S. cents as part of overall economic policy and management. Endi