Dollar lower after US stocks fall

THE Australian dollar hit a five-week low as a combinations of factors drove US and European stocks lower.

At 0700 AEST today, the local unit was trading at 102.97 US cents, down from 103.63 cents yesterday.

Early this morning (AEST), the Australian dollar reached 102.77 US cents, the currency's lowest level since March 12.

Westpac New Zealand senior market strategist Imre Speizer said investors moved out of riskier assets overnight, which drove stock markets and the Australian dollar lower.

"A part explanation would be disappointing US company reports," Mr Speizer said from Auckland.

"The gold price fell a bit but not much, the other commodities fell, notably copper."

The euro posted a two-week low against the US dollar of 130.02 US cent in overnight trade.

Mr Speizer said the euro's decline came after Jens Weidmann, a member of the European Central Bank's governing council, said interest rate could be further cut if conditions in the euro zone worsened.

It also put downward pressure on the Australian dollar.

Mr Speizer said he expected the Australian dollar to trade in a range between 102.50 US cents and 103.40 cents during today's local session.

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