Recent losses for the South Pacific currency against the greenback are connected with speculation that the central bank of the U.S. will taper its monetary stimulus program next month. The Aussie was moderately changed during the Friday trade session against the dollar.
The Australian reports the Aussie's recent losses against the U.S. dollar also are correlated with weak performances of Asian monetary units against the greenback. The Indian rupee and the Indonesian rupiah respectively dropped to record lows and four-year troughs.
"Movements in Asian currencies tend to generate a large impact on the Australian dollar," currency strategy head Richard Grace with Commonwealth Bank of Australia told The Australian on Friday. "The Australian dollar will trade as a proxy for Asian currencies because the liquidity is larger than the combined liquidity of the 10 major non-Japan Asian currencies."
Bloomberg reports the Aussie's drop against the world's reserve currency this week amounts to about 2 percent.
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