Dollar sinks lower

 

dollar,coinsThe Australian dollar has hit fresh six month lows as the US dollar goes from strength to strength.

At 0700 AEST on Monday, the local currency was trading at 89.32 US cents, down from 89.55 cents on Friday.

The US dollar strengthened against all G10 currencies on Friday night, sending the Australian dollar as low as 89.21 US cents, its lowest point since early March, National Australia Bank senior economist, Spiros Papadopoulos, said.

The Australian dollar also took a hit from further falls in the iron ore price, which fell to a new five year low of $81.70 per tonne, Papadopoulos said.

It’s likely to be a quiet week for the currency, with few domestic or international economic events on the calendar.

All eyes will be on the Reserve Bank of Australia’s bi-annual Financial Stability Review, being released on Wednesday, Papadopoulos said.

“Most interest will be in the commentary on the housing market,” he said.

AAP

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