Prime News: Australian dollar tumbles as US dollar surges

The Australian dollar slid Thursday as the US dollar rallied following the Federal Reserve implied it was on trail to raise interest rates as soon as September.

Fed said the American economy is improving, as well as the labor market. Fed added rates will increase gradually.

The currency stood at 66.71 euro cents from Wednesday’s 66.28 euro cents, and 73.18 US cents from 73.21 US cents.

Although the Fed wanted to see more proofs of improvements in the labor sector, the stance was almost upbeat. “That leaves September tightening on the table,” said Kathy Lien, Managing Director at BK Asset Management.

Reserve Bank of Australia Governor Glenn Stevens is slated to speak at Boao Forum for Asia Financial Cooperation Conference Thursday.

The material has been provided by InstaForex Company – www.instaforex.com

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