The Australian dollar has climbed above US$1.20 for the first time in more than a week.
The US stock market rose by nearly 4 per cent on Tuesday and is now up over 4 per-cent in just over two weeks.
On Tuesday, the Australian dollar strengthened to more than 70.50 cents US, up over 5 per cent since last Wednesday.
It is also up over 7 per cent in Canada.
The euro fell 0.1 per cent against the dollar.
The pound strengthened against the greenback, but was little changed against the yen.
The dollar rose against the Japanese yen, falling to 86.85 yen JPY=, up 0.3 per cent from 84.10 JPY.
Meanwhile, the euro rose against other currencies, with the British pound rising 0.6 per cent to $1.17.
A number of US markets opened lower.
The Dow Jones industrial average was down 0.2 per cent.
US stocks rose after the Federal Reserve announced it would hike interest rates by 0.25 per cent for a third straight month.
In the UK, the FTSE 100 rose 0.8 per cent, while the S&P 500 added 0.7 per cent and the Nasdaq composite rose 0,5 per cent each.
At home, the dollar rose to 79.85 US cents, up 2.3 percent.