Aussie dollar drops 2 US cents
The Australian dollar tumbled overnight, following investor fears over Italy and the economic crisis in the greater eurozone region.
The dollar was trading at 101.16 US cents this morning, down more than two US cents from yesterday’s 103.62 US cents.
Contributing to the significant fall was fears over Italian 10-year government bonds, the yields of which have increased to 7.4 per cent. This level is close to that which pushed other eurozone countries to seek bailouts.
The market, and the Australian dollar, will be waiting on news tonight as key talks on Italy’s debt package continue. Italy’s vote on a new austerity package will mark Italian PM Silvio Berlusconi’s last act before he resigns.
Published on: Thursday, November 10, 2011
New on Switzer
- A free vote is the only option on gay marriage 03 Jul •
- Don’t tell me the Yanks are going to add to the Greek and China concerns! 03 Jul •
- Greece, to be continued... 03 Jul •
- Double digit returns for many super funds 02 Jul •
- Markets higher on Greek PM backdown, but can he be trusted? 02 Jul •
- Sell on the rumour, buy on the fact 02 Jul •