PERTH: The Australian dollar is higher, just shy of US78c, as the Federal Reserve’s plans for gradual interest rate hikes continue to weigh on the US currency.
The Australian dollar was worth US77.92c at 12pm (AEST) on Friday, up from US77.39c on Thursday.
IG Markets chief market strategist Chris Weston said the market was now taking a “more neutral stance” on the US dollar in the wake of Wednesday’s Fed meeting.
Fed chair Janet Yellen’s pledge that US interest rates will be raised only gradually had caused “the US dollar to sell off and interest rates to fall, and equity markets to rally significantly”, Mr Weston said.
Overnight, the Australian dollar peaked at US78.49c, its highest level since May 22.
Meanwhile, the local bond market was mixed at noon.
The September 2015 10-year bond futures contract was trading at 97.095 (implying a yield of 2.905 per cent), down from 97.105 (2.895 per cent) on Thursday.
