Aussie dollar hit by iron ore fall

THE Australian dollar is lower against its US counterpart, pulling back from a multi-week high amid a sharp fall in the price of iron ore.

THE Australian dollar is lower against its US counterpart, pulling back from a multi-week high amid a sharp fall in the price of iron ore.

At 0635 AEST on Wednesday, the Australian dollar was worth 75.37 US cents, down from 75.50 US cents on Tuesday, despite the US dollar falling against a basket of six major currencies.

Westpac’s Imre Speizer said he expected the local currency to be range-bound between 75,00 and 76.00 US cents ahead of the Federal Reserve’s interest rate decision, expected early Thursday (AEST).

“The FOMC (Federal Open Market Committee) policy decision is universally expected to raise the mid Fed funds rate to 1.125 per cent,” he said in a morning note.

The Australian dollar is also lower against the yen and the euro.

CURRENCY SNAPSHOT AT 0635 AEST ON WEDNESDAY

One Australian dollar buys:

* 75.37 US cents, from 75.50 on Wednesday

* 82.94 Japanese yen, from 83.09 yen

* 67.24 euro cents, from 67.47 euro cents

(*Currency closes taken at 1700 AEST previous local session)

Originally published as Aussie dollar hit by iron ore fall