Dollar falls on Stevens' rate comments

THE dollar dropped below US91c after Reserve Bank governor says there's room for another cash rate cut.

The US Fed ends its two day policy meeting early on Thursday morning. (AAP Image/Julian Smith)

THE Australian dollar dropped below 91 US cents after Reserve Bank governor Glenn Stevens said there was room for another cash rate cut.

In a speech to economists in Sydney, Mr Stevens said there were signs of previous cuts working in the economy, but not enough to prevent further cuts.

At 1.11pm (AEST), soon after he began speaking at the function, the Australian dollar hit 90.92 US cents, down from 91.63 US cents at 1pm.

The local currency had already fallen on Tuesday after the release of weaker than expected building approvals data.

The Australian dollar ended yesterday's local trading session at 92.45 US cents.

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