Australian dollar falls as US Fed begins rates meeting

THE Australian dollar is weaker as the US Federal Reserve begins its two-day meeting on monetary policy.

Australian currency.

THE Australian dollar is weaker as the US Federal Reserve begins its two-day meeting on monetary policy.

At 0630 AEDT on Wednesday, the local currency was trading at 76.15 US cents, down from 76.29 cents on Tuesday.

The US dollar has risen against a range of currencies as the Fed’s Federal Open Market Committee begins its key meeting on interest rates.

Traders are waiting for Thursday morning’s accompanying statement to see if policymakers drop the word “patience” in regards to a future interest rate rise.

The Australian dollar weakened on Tuesday after the minutes of the Reserve Bank of Australia’s March meeting convinced traders a near-term rate cut was more likely.

KEY MOVEMENTS

One Australian dollar buys:

* 76.15 US cents, from 76.29 cents on Tuesday

* 92.44 Japanese yen, from 92.61 yen

* 71.91 euro cents, from 72.26 euro cents

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

Source: IRESS

Originally published as Australian dollar falls as US Fed begins rates meeting