Aussie rallies as us dollar loses ground

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THE Australian dollar has rallied amid further weakness in the greenback, amid concerns about US President-elect Donald Trump’s economic plans.

The local currency was trading at 74.95 US cents at 0702 AEDT on Friday, up from 74.69 US cents on Thursday. It hit 75.19 US cents just after midnight. Westpac senior market strategist Imre Speizer said the US dollar fell further on investor concerns about an absence of information regarding promised fiscal stimulus following Mr Trumps first press conference in six months. The US dollar index is 0.6 per cent lower on the day, extending yesterdays decline to a one-month low, Mr Speizer said in a research note. The Australian share market is expected to open broadly flat following falls in the US, Germany, France, Italy and Asia overnight.

At 0702 AEDT on Friday, the local SPI 200 futures contract was up three points at 5,731 points.

On Thursday, the Australian share market fell as early momentum provided by a higher Australian dollar and commodity prices was overshadowed by negative responses to Mr Trumps first press conference.

The benchmark S&P/ASX200 dropped 4.6 points, or 0.08 per cent, to 5,766.9 points, while the broader All Ordinaries index slipped 2.1 points, or 0.04 per cent, to 5,821.6 points.


One Australian dollar buys:

* 74.95 US cents, from 74.69 US cents on Thursday

* 85.90 Japanese yen, from 85.46 yen

* 70.54 euro cents, from 70.40 euro cents

* 61.60 British pence, from 61.15 pence

* 105.34 New Zealand cents, from 105.48 NZ cents

(*Currency closes taken at 1700 AEDT previous local session)