Jun 18, 2026 – 4.00pmThe Australian dollar has come under pressure after the US Federal Reserve unexpectedly signalled that interest rates could start to climb in the world’s largest economy this year if inflation continued to creep higher.The local currency dropped as much as 1 per cent overnight to below US70¢ after the Fed’s hawkish pivot sent the US dollar higher and triggered a spike in bond yields as traders started to recalibrate their interest rate bets.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles
Aussie dollar under pressure after Fed pivots on rates
A hawkish shift from the US Federal Reserve has shrunk Australia’s bond yield advantage over America and sent the currency below US70¢.
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