Australian dollar plumbs 10-month lows as US yields keep climbing

Business Recorder reported on Friday that the Australian dollar remained close to its weakest level in 10 months, at $0.68, after sliding as low as $0.6798 overnight. It has lost 0.8% over the week, while the New Zealand dollar edged down to $0.5543 and is near its 19-month trough of $0.5529.

Rising US Treasury yields and stronger expectations of a Federal Reserve increase of 50 basis points next month have supported the US dollar, putting pressure on both currencies. The market-implied chance of that larger move rose to 15% from 12% a day earlier. The Australian dollar also faced weaker commodity prices, including copper at a four-month low, and reduced expectations of further tightening by the Reserve Bank of Australia; in New Zealand, a quarter-point rate rise in December is widely expected.