Dollar hits six month low

 

Dollar,coin,currency,moneyThe Australian dollar has hit a six month low as the price of iron ore falls and the US dollar continues its rally.

At 0700 AEST on Thursday, the local unit was trading at 91.53 US cents, down from 91.56 cents on Wednesday.

On Wednesday, it fell as low as 91.37 US cents, the currency’s weakest level since March 25.

It has fallen 2.5 per cent against the greenback this week as the US dollar rallies on speculation that the Federal Reserve might raise its cash rate earlier than expected.

BK Asset Management MD, Kathy Lien, said the Australian dollar could accelerate its losses on Thursday after the release of local jobs figures.

The unemployment rate is expected to ease to 6.3 per cent in August after its surprise rise in July to 6.4 per cent.

“Economists are looking for job growth to rebound after a decline in July but based upon the manufacturing and construction sector reports, labour market conditions did not improve in August,” she said.

“Should job growth in Australia fall short of expectations, we can certainly expect further pain for the Australian dollar.

“The currency was sold sharply over the past 24 hours on the back of weaker consumer confidence and reports that iron ore prices could fall further.”

AAP

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