Australian Dollar Plummets Below US79c

[chlamor]

Dollar plumments below US79c

22mar05

THE dollar opened lower today after the US currency was supported by speculation that the US central bank would tonight signal a more aggressive pace of interest rate tightening.

At 0700 AEDT the local currency was trading at $US0.7857/62, from yesterday's close of $US0.7913/21.

Overnight it traded within a one US cent range, hitting a low of $US0.7845 and a high of $US0.7940.

ABN Amro head of foreign exchange David Mozina said a number of important factors had weighed on the dollar overnight. He said the US Federal Reserve was tonight expected to hike interest rates a further 0.25 percentage points to 2.75 per cent, but it was the supporting statement that will be closely watched by the markets.


http://www.thecouriermail.news.com.au/common/story_page/0,5936,12622736%255E1702,00.html