The currency traded at its lowest in more than a week as gold, Australia's third most valuable overseas shipment, sank below $900 an ounce for the first time in six weeks. The local dollar, known as the Aussie, added to losses made yesterday after Reserve Bank of Australia Governor Glenn Stevens said the highest interest rates in almost 12 years will slow inflation.
``The Australian dollar has a touch more downside to go,'' said Paul Milton, chief foreign-exchange dealer at Societe Generale SA in Sydney. ``Commodities are at a very critical point at the moment and they're shimmying to roll over. Stevens' comments were not too encouraging for more rate hikes either.''
The Australian dollar traded at 90.74 U.S. cents as of 9:02 a.m. in Sydney, from 90.88 in late Asian trading yesterday. It may move between 90 and 91.10 cents today, Milton said.
Prices of raw materials, which make up about 17 percent of the Australian economy through exports, tumbled as investors shifted money into equities on signs banks are rebounding from U.S. subprime losses. UBS AG and Lehman Brothers Holdings Inc. said they were raising $19 billion to replenish capital.
Source: By Aussie Money Tips
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