The Australian dollar has dropped as the US dollar gains further ground following the US Federal Reserve’s recent interest rate hike, with the central bank forecasting another three rate rises next year.
At 0730 AEDT on Friday, the local unit was trading at 73.53 US cents, down from 74.14 cents on Thursday.
Imre Speizer, Westpac senior market strategist, said the momentum in the Aussie has “flipped to negative”, thanks to the US dollar’s surge.
“The US dollar has had an impressive rise since the US election and has potential to rise further during the months ahead,” he said in a research note on Friday.
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