The Australian dollar currency on Monday morning dropped below 76 cents, the lowest in two years, as financial markets contemplated a bigger than usual interest rate cut on Tuesday from the Reserve Bank of Australia (RBA).
A majority of economists expect the RBA to cut interest rates by 50 basis points for the first time in seven years.
The Australian dollar has shed 23 percent since reaching a 25-year high of 98.49 US cents in mid-July, and has lost 8.4 percent of its value in the past week alone.
The Australian dollar sank to 0.7585 U.S. dollar at 11:25 a.m. (AEDT), its lowest level since October 2006 and its weakest point since the onset of the global credit crunch.
Against the Japanese yen, the Australian dollar dropped below the key 80 yen level Monday morning for the first time since January 2005.
Economists believe that with the U.S. economy expected to recover, the Australian dollar was tipped to weaken against the U.S. dollar, but firm against the euro.
Source: Xinhua
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