Dollar falls as Slovaks reject EU fund vote

THE Australian dollar fell almost a quarter of a US cent after Slovakia rejected changes to the Eurozone's financial rescue fund.

THE Australian dollar fell almost a quarter of a US cent after Slovakia rejected changes to the Eurozone's financial rescue fund.

This morning, Slovakian politicians voted against a revamp to the European Financial Stability Facility (EFSF) in a vote that also toppled the country's centre-right government which had staked its future on the motion.

The country's leaders said they would try to pass the EFSF changes in a repeated vote with support from the opposition, but no date has been fixed for that vote yet.

The vote came after the 16 other eurozone members approved changes to revamp the 440 billion euro ($603 billion) EFSF, set up in May 2010 after Greece was bailed out to save it from default.

The changes to the EFSF require the backing of all 17 eurozone countries.

At 7.37am (AEDT) today, the local unit was trading at 99.61 US cents, down from 99.94 cents at 7.00am (AEDT), before the vote was taken.

The currency finished yesterday's local session 99.72 US cents.

HiFX senior trader Stuart Ive said Slovakia's rejection of the EFSF hurt market optimism and put some downward pressure on the Australian dollar.

"They are the last country to vote. By not passing it they effectively block the extension of the bailout fund for Europe," Mr Ive said from Auckland.

"We had a sharp correction to the downside."

This morning, the Australian Bureau of Statistics will issue official housing finance data for August.

The Westpac/Melbourne Institute Survey of Consumer Sentiment for October will also be released on today.