Aussie down against the dollar

Published: 20 May at 11 AM Tags: Euro, Dollar,

A drop in the price of iron ore has caused the Australian dollar to slip by more than 0.5 per cent. Iron ore is one of Australia’s main exports. Although the Aussie has managed to recover from lows plumbed at the end of January, there has been concern that the economy could suffer from slow growth in China, the country’s top trading partner.

The euro is also still under pressure because of threats from the European Central Bank that further monetary easing could be introduced in attempt to boost the economy in the eurozone.

The general consensus from currency analysts is that investors are looking for safer bets than the euro and Aussie at the moment.

The safe haven yen is at its highest level in well over three months against both the dollar and the euro at the moment. The Japanese currency has been given a boost by signs that the Bank of Japan will not be introducing any easing in the near-term.

The dollar is worth 101.46 yen after falling to a low of 101.10 yen. The yen is also up 0.1 per cent against the euro. The BOJ has begun a two-day meeting. However, it is widely expected that there will be no major shift in policy.