The Reserve Bank has welcomed indications the US Federal Reserve will hike interest rates later this year, saying such a move will probably weaken the Australian dollar.
RBA deputy governor Philip Lowe says comments last week from US Federal Reserve chair Janet Yellen that the Fed's funds rate would rise later in 2015 was good news for the future direction of the local currency.
The dollar has been hovering around the 80 US cent mark in recent days, but the RBA would prefer it was around 75 US cents.
"At some point when they (US Fed) raise interest rates the US dollar will probably strengthen further against the Australian dollar," Mr Lowe told the Thomson Reuters Australian Regulatory Summit on Wednesday.
"That's something we would welcome, as we've said a number of times recently."
Mr Lowe said the Fed would raise rates when the US economy appeared to be strengthening.
"Any sign that the US economy is strengthening is good news, it's good news for us all," he said.
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