Australian dollar closes flat

THE dollar closed the local session little changed, after rumours of an impending rate rise in China put pressure on Asian shares.

THE dollar closed the local session little changed, after rumours of an impending rate rise in China put pressure on Asian shares.

At 5pm (AEDT), the dollar was trading at 98.46 US cents, down a touch from yesterday's close of 98.54 cents.

Since 7am (AEDT), the local unit traded in a tight range between 98.41 US cents and 99.13 US cents.

CMC Markets foreign exchange dealer Tim Waterer said the local dollar had been under sustained pressure since midday, when Chinese shares tumbled on rumours of an impending interest rate rise.

"Basically, the Aussie dollar was more sensitive today to jitters on Asian bourses," he said.

"That's why the Aussie fell more than other currencies."

However, China's central bank has made no statement about rising interest rates.

Chinese shares were marginally in the green at 4.30pm (AEDT), with the Shanghai composite index up 0.94 per cent to 2865.45 points.

News that Ireland could receive tens of billions of euros in an international bailout sent the Euro dollar slightly higher.

The head of Ireland's Central Bank, Patrick Honohan, said he expected a "very substantial loan, tens of billions," from the EU and IMF to prop up the crisis-hit economy, in one of the clearest signs yet that Ireland is prepared to accept help.

Resolution to the crisis, which has driven European sentiment for the past week, would be welcome news, Mr Waterer said.