The Australian dollar remained below $0.71 at a four-week low after the Federal Reserve delivered its first interest-rate increase since 2023, strengthening the U.S. dollar and outweighing expectations for additional Reserve Bank of Australia tightening. The Fed unanimously lifted its federal funds rate by 25 basis points to 3.75%-4.00%, citing elevated inflation, while projections showed 16 of 18 officials expect at least one more increase this year. Attention now shifts to the RBA’s September 29 decision, with markets pricing an 85% chance of a 25-basis-point rise from 4.35% and expecting the cash rate to reach 4.85% by early 2027. The IMF identified persistent inflation and higher energy prices as risks that could prompt further RBA hikes. Traders are also watching the Iran-US war and its effect on oil, with crude above $100 a barrel but easing as Saudi Arabia works to restore pipeline capacity.