$A falls one US cent after Fed statement

The Australian dollar has fallen more than one US cent after the Federal Reserve issued a more upbeat assessment of the American employment market.

The currency dropped to an overnight low of 87.80 US cents, from 88.90 cents just before the Fed statement was released.

At 0630 AEDT on Thursday, the local unit was trading at 87.92 US cents, down from 88.64 cents on Wednesday.

The statement, issued after the Federal Reserve's two-day policy meeting, said the jobs market had enjoyed "substantial improvement" and the Fed expected its underlying strength to continue.

The Australian dollar has fallen more than 10 US cents in recent months as the US economy improves and the chances of an interest rate hike gets closer.