Rumours rife that US billionaire George Soros is shorting the Australian Dollar

RUMOURS that US billionaire George Soris was planning a raid on our dollar ahead of today's RBA announcement saw the dollar fall and sent traders into a spin.

George Soris

RUMOURS that a US billionaire was planning a raid on our dollar ahead of today's RBA announcement saw it finish lower last night, sending traders into a spin.

Speculation was rife that Hungarian-American business magnate George Soros, known as the man who broke the Bank of England, was planning the raid on our currency.

A large number of trades shorting the dollar totalling $US1 billion were placed via Hong Kong and Singapore by the business magnate’s Soros Fund Management, according to ValueWalk.

One Sydney-based FX trader told the website someone has picked a mark around $US1.0270 and seemed to be betting on a rate cut.

Shorting the dollar or short selling involves the practice of selling securities – in this case the Australian dollar - or other financial instruments that are not currently owned, with the intention of repurchasing them at a lower price.

Soros is famously known as the man who broke the Bank of England after made a $1 billion profit when he shorted the British Pound in 1992.

At 0700 AEST this morning, the Australian dollar was trading at 102.54 US cents, down from 102.72 US cents yesterday afternoon.

It comes ahead of the Reserve Bank’s announcement of its interest rate decision at 1430 AEST following its monthly board meeting.

Economists are widely tipping the RBA to keep the cash rate unchanged at three per cent.