The Australian dollar has dropped more than one US cent overnight to a fresh six-month low after the US Federal Reserve signalled more interest rate hikes next year.

At 0700 AEST on Thursday, the local currency was trading at 89.58 US cents, down from 90.71 cents on Wednesday.

The Australian dollar fell as low as 89.53 US cents overnight, its lowest point since early March, after the Federal Open Market Committee released the statement from its two-day meeting.

The FOMC did not change any language it uses to signal its rate plans, saying any increase will happen only a “considerable time” after the October end to the bond-buying stimulus program.

But the central bank implied there would be more rate hikes than they’ve previously signalled in 2015, ANZ senior manager FX in Auckland Sam Tuck said.

“They also lowered their projections for where the unemployment rate would be which is a positive and increased the bottom range for where inflation would be,” Mr Tuck said.

“This has given the market the greenlight to continue doing what they’re doing.”