Dollar sells off as global interest rates eyed
The local unit had lost ground at midday, as traders priced in higher chances of Federal Reserve moves.
The Australian dollar is down as investors sell off risk currencies amid worldwide concerns about interest rate moves.
At 12.30 (AEST) on Monday, the local unit was trading at US75.28 cents, down from US75.41c on Friday.
OANDA Australia and Asia Pacific senior currency trader Stephen Innes said traders were selling off risk currencies like the Aussie dollar amid hawkishness from the European Central Bank and market jitters about rate moves in the US.
“We could be on the verge of a powerful concurrence of factors as volatility takes grip,” he said in a note.
“Traders have been quick to price in worst case scenario as interest rate rise jitter start taking hold and has resulted in some fairly assertive moves in bond, equity, and forex asset classes.”
It came as the S&P/ASX200 index traded more than 2 per cent lower at 12pm (AEST).
More Coverage
Add your comment to this story
ASIC litigation a bad call
Judgment in favour of Terracom was a blunt warning to the nation’s corporate cop.
Productivity Commission opens Pandora’s box on tax
Canberra’s powerful reform body has gone where the Treasurer didn’t want to by advocating for a radical overhaul of company taxes to fire up the economy.
To join the conversation, please log in. Don't have an account? Register
Join the conversation, you are commenting as Logout