Aust dollar falls on Fed statement

Local currency holds below US95c as Fed recommits to bond-buying program.

The Australian dollar has recovered some ground after dropping to a three-week low following the US Federal Reserve's announcement that it would maintain its aggressive economic stimulus program for the rest of the year.

At 0630 AEDT, the local unit was trading at 94.75 US cents, down from 94.96 cents on Wednesday.

Following its two-day policy meeting the Fed said the US economy still needed support and it would keep buying $US85 billion in government bonds every month to encourage borrowing and spending.

The Australian dollar dipped as low as 94.42 US cents after the announcement, its weakest level since October 11.