EXPM:HRLDF - Post by User
Post by
paljoeyon Oct 30, 2014 3:03pm
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Post# 23078214
Australian dollar drops another cent
Australian dollar drops another cent
THE Australian dollar has fallen to its lowest level in a week after the US Federal Reserve indicated growing confidence in the American economy.
At noon (AEDT), the local unit was trading at US87.76 cents, down from US88.64c yesterday.
During the morning the currency fell as low as US87.60c, after peaking at US89.13c a few hours before the Fed statement was released at 5am (AEDT).
The US central bank confirmed it will not raise the Federal Funds Rate for a “considerable time”, and as was widely expected said it will end its economic stimulus program, called quantitative easing (QE), at the end of October.
The bank has been tapering its bond purchase program, from $US85 billion a month in December 2013 to just $US15 billion in October.
Westpac senior currency strategist Sean Callow said the Fed statement was a major mover for currency, stock and bond markets.
“The Federal Reserve was more confident in the economic outlook than expected as it confirmed the end of QE, sparking sharp gai