Dollar recovers losses

 

money,stethoscope,coin,dollarThe Australian dollar is regaining some ground following its fall on suggestions the US could have more interest rate hikes next year.

At 0700 AEST on Friday, the local currency was trading at 89.91 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 Federal Open Market Committee 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.

“The US dollar gave back some of yesterday’s post FOMC gains overnight, but the Australian dollar saw only a modest gain,” National Australia Bank senior economist, Spiros Papadopoulos, said.

“The Australian dollar is slightly higher at 89.90 US cents this morning, after spending most of yesterday afternoon in the 89.40 to 89.70 US cent range.”

All eyes were now on the Scottish Independence vote, Papadopoulos said, with the pound strengthening in anticipation of a `no’ vote.

“As we await the results of the Scottish Independence vote to come through this afternoon, the pound is anticipating that the `no’ vote will win,” Papadopoulos said.

AAP

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