Aust dollar falls below US90c

In overnight trade, local currency falls after release of Fed minutes.

The Australian dollar has fallen to a three-year low after minutes from the United States Federal Reserve's last meeting revealed some policy-makers said tapering should start soon.

At 0630 AEST, the local unit was trading at 89.80 US cents, down from 90.36 cents on Wednesday.

The Australian dollar fell to its lowest point since August 2010 after the greenback was boosted by the revelation that "a few" members of the Federal Open Market Committee (FOMC) "suggested that it might soon be time to slow somewhat the pace" of asset purchases, the minutes said.

But the timing of the Fed's plan to taper its stimulus program remained unclear, as others in the group "emphasised the importance of being patient".

They said more data gauging growth in the economy was needed before reducing the $US85 billion-a-month bond-buying program.

Want access to our latest research and new buy ideas?

Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.

Sign up for free

Related Articles