Australian dollar hit by rate hike expectations

Financial and commodity markets analytics

The Australian dollar is sharply lower today after another US Federal Reserve board member joined other board members for the Central bank to start lifting interest rates sooner rather than later.

At 7.54pm (GMT) the Aussie dollar was trading at US75.21c down 1.28 percent from yesterday’s trade.

Just last week, US Fed president Janet Yellen talked down the expectations of a rate rise with analysts left wondering when the Fed would once again raise rates, if at all this year.

In a sign that many board members were breaking with Yellen’s stance, St. Louis Fed President James Bullard joined three other board members by calling for the US central bank to once again raise rates which could be as early as April.

"We didn't do it, so now we can look at April and see what the data look like when we get to April," Bullard told Bloomberg News.

His comments joined another dissident Philadelphia Fed President Patrick Harker who said the Fed should move on rates as early as next month.

The number of Fed board members who would now like to see a continuation of rate hikes sooner rather than later now stands at 4 out of five, which is beginning to make Fed president Janet Yellen look like a lone wolf.


The world of trading has no boundaries
Important notice
By clicking "Continue" you will be redirected to the website operated by FIBO Group Holdings Limited, a company registered in Cyprus and regulated by CySEC. Please familiarize yourself with the Terms of Business through the link. Click "Cancel" to remain on this page.