Australian Dollar Touches 3-Month Low as Rate Cut Bets Increase

Australia’s dollar slid to the lowest level in almost three months before a report this week that may show unemployment increased, fueling speculation that the Reserve Bank will reduce its key rate next month.

The so-called Aussie weakened versus most of its 16 major counterparts after Treasurer Wayne Swan said yesterday that reduced interest rates will help Australia weather deteriorating conditions in the world economy. New Zealand’s dollar, nicknamed the kiwi, remained lower after its biggest weekly drop in more than four months, as Asian shares declined.