Third consecutive drop for Australian dollar
The Australian dollar reached a six-week low this morning as investors started selling high-yielding assets, it has been reported.
The currency slumped to 84.28 US cents in Sydney, Bloomberg reports, reflecting a 1.4 per cent drop for the week.
Its latest weakening represents the third weekly drop in a row for the Australian currency.
During this week, the New Zealand dollar also dropped by 2.3 per cent. Yesterday saw the currency reaching a low of 74.30 US cents, Bloomberg reports.
Commenting to Australian news provider news.com.au, currency strategist Robert Rennie said despite "good underlying fundamentals" for the Australian currency, the global assets markets are "nervous, choppy and volatile".
"This is going to continue," he added.
The Australian economy was boosted yesterday with data showing improved employment figures for July.
This, Mr Rennie said, along with a decision to rise Australian interest rates by 0.25 per cent, makes the Australian dollar "more attractive to foreign investors" as long as the domestic and global economies remain healthy.
He predicted to the news provider the dollar is likely to appreciate in the medium-term.
"It's going to be a case of a move higher that's going to be grinding nerves rather than a straight line higher,'' he said.