Dollar eases against greenback

THE Australian dollar is almost half a cent lower against its US counterpart, falling back from its 81 US cents of Friday.

The Aussie has dipped below 81 US cents.

THE Australian dollar is almost half a cent lower against its US counterpart, falling back from its 81 US cents of Friday, despite the greenback itself weakening.

At 0635 AEST on Monday, the Australian dollar was worth 80.58 US cents, down from 81.00 US cents on Friday.

Reduced expectations for another US Federal Reserve interest rate rise this year helped drive down the US dollar to its lowest in more than two-and-a-half years on Friday, with stubbornly weak inflation continuing to surprise Fed policymakers.

New York Fed president William Dudley did not repeat an assertion from three weeks ago that he expects to raise rates once more this year, in a speech on Thursday, and an agreement in Congress to push the US debt ceiling to December, both hit the greenback.

Concerns over the impending short-term impact of Hurricane Irma on the US economy also weighed, analysts said.

Against a basket of other major currencies, the US dollar index was down 0.38 per cent after touching a low of 91.011, its weakest since January 2015. The Aussie dollar is also lower against the yen and the euro.

CURRENCY SNAPSHOT AT 0635 AEST ON MONDAY

One Australian dollar buys:

* 80.58 US cents, from 81.00 on Friday

* 87.17 Japanese yen, from 87.23 yen

* 67.04 euro cents, from 67.15 euro cents

(*Currency closes taken at 1700 AEST previous local session)

Originally published as Dollar eases against greenback