The Australian dollar dove toward weekly losses against the world's reserve currency and the Japanese yen on Friday as tensions continued growing about this weekend's vote for the future of Ukraine, according to Bloomberg.
Concerns about the economic slowdown in China also prove to be harmful to the performance of the Aussie. Whether Crimea will remain part of Ukraine or be annexed by Russia will be decided by voters this weekend. The Goldman Sachs Group slashed its outlook for the Aussie, noting the monetary unit is forecast to lose value during the next three-plus months.
"It is mostly Ukraine related," head of currency strategy Ray Attrill with National Australia Bank told The Australian on Friday, noting the Aussie is enduring pressure from both the upcoming Crimea vote and questions about the Chinese economy. "The rhetoric there is ramping up. Inevitably there is going to be a significant risk off event next week."
Russia conducted military exercises near Crimea on Friday, augmenting tensions in the region, according to The Australian.
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