Australian dollar plunges
At 0700 AEDT on Friday, the local unit was trading at 74.11 US cents, down from 74.79 cents on Thursday.
In an appearance before a Congressional Committee overnight, Yellen said the Fed could raise its interest rate “relatively soon” following further improvement in the job market and a pick-up in inflation.
“Reading between the lines of Yellen’s testimony, it really seems like she’s prepared to lift rates in December. The market’s currently pricing around a 95 per cent chance of that,” National Australia Bank economist Tapas Strickland said on Friday.
Westpac senior market strategist Imre Speizer said the US dollar rose to a 14-year high after Yellen “helped cement market expectations for a December rate hike”.
Yellen’s comments caused the Aussie and New Zealand dollar to fall, “despite risk sentiment remaining healthy,” Speizer said in a research note.
Access exclusive analysis, locked news and reports with Inside Retail Weekly. Subscribe today and get our premium print publication delivered to your door every week.
Inside Retail Polls
We reveal the freshest changemakers, disruptors and trendsetters in the latest issue, grab a copy today:… https://t.co/zB6tefVJJk15 hours ago
Have you heard of Toymate? What was once a small family business has become a rapidly expanding retail chain fillin… https://t.co/kRMzUfZ7zn1 day ago