Australian dollar in recovery after US Fed losses

THE Australian dollar is regaining some ground following its fall on suggestions the US could have more interest rate hikes next year.

A 1 Australian Dollar coin and a 1 US Dollar note are seen in Canberra, Tuesday, May 21, 2013. As the US economy rebounds, there are predictions that the Australian dollar could fall as low as 90 US cents in the coming weeks and months. (AAP Image/Lukas Coch) NO ARCHIVING

THE Australian dollar is regaining some ground following its fall on suggestions the US could have more interest rate hikes next year.

At 0630 AEST on Friday, the local currency was trading at 89.84 US cents, up from 89.57 cents on Thursday.

The Australian dollar hit fresh six-month lows after the release of a statement from the US central bank on Thursday.

The statement suggested more rate hikes in 2015 than had previously been signalled, with Fed officials raising their median estimate for where interest rates will be at the end of 2015.