Dollar lower as greenback rallies

dollar,coin,moneyThe Australian dollar is lower as the US dollar gains ground on the back of expectations that a June rate hike by the US Federal Reserve is still possible.

At 0700 AEST on Monday, the local unit was trading at 78.34 US cents, down from 78.75 cents on Friday.

Federal Reserve Bank of Cleveland president, Loretta Mester, said on Friday that the Fed is getting closer to the appropriate time to raise its interest rate and all scheduled meetings, including June, are on the table.

She added that the next two sets of US employment figures will be important to the rate rise decision.

Bank of New Zealand strategist, Kymberly Martin, said the US dollar rose sharply on the back of these comments and similar ones made by the San Francisco Fed president John Williams.

“This did seem to give some much needed support to US dollar bulls, whose confidence has been flagging throughout April,” she said.

“Appropriately, it is the second quarter economic data that is now getting the most attention.”

The Australian dollar was also under pressure from falling gold and oil prices.

Locally on Friday, the Australian Bureau of Statistics releases building approvals figures for March, the TD Securities Melbourne Institute inflation gauge is due out, as are ANZ job ads figures.

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