THE SYDNEY MORNING HERALD: The Australian dollar plunged more than 2.5 US cents in less than 18 hours, compounding a series of significant falls over the past days that have seen the value of the currency hit its lowest level since last September against its US counterpart - down more than 8 per cent since the start of the month.
This morning, the Aussie dollar traded as low as 85.15 US cents, well down on the 87.67 US cents it was buying at yesterday's close and a world away from the 92.7 US cents it was buying at the start of May.
At the local close, the local currency had bounced back - a little - to 85.88 US cents, still down 1.79 US cents from yesterday.
Investors were offered many reasons to sell the commodity currency: Germany's move to ban some types of short-selling, a sinking euro, worries about Europe's future, falling stocks and commodities, and poor consumer mood data from Australia.
Data out today showed the biggest drop in consumer confidence since the global financial crisis. That news reinforces the market's view that interest rates will not rise any time soon - and low interest rates discourage foreign investors from buying Australian assets, effectively depleting demand for the local currency. Read on (+ video of business and markets report) >>> Gabrielle Costa | Wednesday, May 19, 2010
