$A slumps on Fed meeting

The Australian dollar has taken a tumble after the US Federal Reserve’s update on monetary policy triggered a surge in the greenback against most other major currencies.

Markets on Wall Street also gained ground as the Fed renewed its pledge to keep US interest rates near zero for some time yet.

Unemployment continues to be an major concern for the Fed, but some members of the Federal Open Market Committee indicated that they would like to see US interest rates rise some time next year.

The online stores revamping the retail business

Some analysts were expecting a strong message on that front from today’s statement, but instead merely got hints that rates may rise by the middle of next year, rather than later in 2015.

The Dow Jones Industrial Average closed 0.2 per cent higher at 17,156 points.

Markets retreated slightly after the central bank’s announcement, but edged up again as investors began to digest the detail.

The S&P 500 index ended the day 0.1 per cent higher, just below 2,000 points.

The Nasdaq closed slightly higher as well.

However, it has been a very different ride for the Australian dollar.

It has lost almost one-and-half cents against the US dollar in the past few hours.

Around 8:30am (AEST) it was buying 89.5 US cents.

Against the other major currencies the Australian dollar was fairly steady, buying 55.1 British pence, 69.67 euro cents and 97.1 Japanese yen.

There is also a fairly underwhelming outlook for the Australian share market.

It is expected to open flat after six days in a row of closing in the red.

In futures trade the SPI 200 index was steady, on 5,398 points.

West Texas crude oil was selling at $US94.28 a barrel and Tapis crude was trading just above $US101.

Spot gold was worth $US1,233 an ounce.

Stay informed, daily
A FREE subscription to The New Daily arrives every morning and evening.
The New Daily is a trusted source of national news and information and is provided free for all Australians. Read our editorial charter.
Copyright © 2024 The New Daily.
All rights reserved.