THE Australian dollar jumped more than 1.5 US cents after Federal Reserve chairman Ben Bernanke declared US stimulus measures would continue.
The local currency hit 92.94 US cents shortly before 9am AEST, only four hours after sinking below 91 US cents. It was at 91.96 US cents at yesterday's local close.
Mr Bernanke's address in Cambridge Massachusetts sparked a dramatic move in the Australian dollar this morning, as he told a question and answer session that US interest rates were likely to remain low amid a weak American jobs market and contained inflation.
"If you put all of that together, you can only conclude that highly accommodative monetary policy for the foreseeable future is what is needed for the US economy,'' he said.
Shortly before 6.45am AEST, the dollar shot up from 91.21 US cents to hit 92 US cents within less than an hour, as Mr Bernanke began delivering a prepared speech.
