The Australian dollar fell with the price of iron ore, reversing a gain against its U.S. peer from Monday when bets receded that the Federal Reserve will raise interest rates this month.

The Aussie slid against all its developed-market peers as iron ore futures headed for their lowest close in 2 1/2 months on the Dalian Commodity Exchange. The dollar weakened against most of its major counterparts Monday after Fed Governor Lael Brainard said the case for raising rates is “less compelling.” The market-implied probability of a U.S. rate hike at the Sept. 20-21 meeting dropped to 22 percent from 30 percent at the end of last week.

“The Aussie dipped during the Asian session as iron ore futures fell,” said Elias Haddad a senior currency strategist at Commonwealth bank of Australia in Sydney. “Rising steel stockpiles in China is raising surplus concerns in steel markets.”

Australia’s dollar sank 0.3 percent to 75.41 U.S. cents as of 6:34 a.m. in London from Monday, when it gained 0.3 percent. Iron ore for January delivery slumped 3.1 percent to 392.5 yuan.

The greenback was little changed at 101.92 yen, following a 0.8 percent decline in the previous session. It was at $1.1232 per euro from $1.1235 in New York.

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