A weak Australian dollar starts to threaten RBA’s inflation fight

Detailed summary

The weakest Aussie in seven months could lead to more expensive imports, stoking further price rises to make the central bank’s job harder.

The Australian dollar has come under renewed selling pressure, further complicating the Reserve Bank of Australia’s effort to get inflation back under control, which has already pushed borrowing costs to the highest in 18 years.

The Aussie hit a fresh seven-month low overnight after a senior US Federal Reserve official warned that a supersized half of one percentage point interest rate increase may be on the table next month should inflation in America remain too high.

Opening of the article, excerpted from Australian Financial Review. To read the rest, open the article on the publisher's site.