The Australian dollar is higher after Wall Street made modest gains as it appear less likely the US Federal Reserve will increase the pace of its interest rate hikes this year.

At 0635 AEST on Thursday, the local currency was worth 75.58 US cents, from 75.33 US cents on Wednesday.

The minutes from the Federal Reserve’s latest meeting suggested higher inflation may not result in faster interest rate hikes.

One Australian dollar buys 83.16 Japanese yen, from 83.09 yen and 64.62 euro cents, from 64.06 euro cents.

AAP

Access exclusive analysis, locked news and reports with Inside Retail Weekly. Subscribe today and get our premium print publication delivered to your door every week.