The Australian dollar has reached its biggest one-day leap in almost two years Wednesday following the Federal Reserve shocked markets with its bearish statement.
Although the US central bank dropped the term “patient” from its statement about potential interest rate hikes, Fed Chair Janet Yellen said it won’t mean they would be anxious.
Aussie rallied about 78.46 US cents from Wednesday’s 76.06 US cents. Versus the euro and the Japanese yen, it traded at 71.76 euro cents and ¥93.16, respectively.
The Fed’s language ignited a selloff in the greenback and bolstered the currency, but gave certain “dovish remarks about holding interest rates close to zero for longer,” said Andrew Barnett, Director at LTG GoldRock.
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