Aussie Dollar at Six-month Low

Hiruki Nakamura
10 Sep, 2014
New York City

Australian dollar sank to a six-month low as the prospect of rate increase in the U.K. and U.S. gathered momentum. Aussie dollar dropped below 92 cents and 95 cent currency band ahead of Australian bond offering.

[R]5:00 PM Sydney, Australia – Australian dollar sank to a six-month low as the prospect of rate increase in the U.K. and U.S. gathered momentum. Aussie dollar dropped below 92 cents and 95 cent currency band ahead of Australian bond offering.[/R]

Stocks in Sydney traded lower and the Aussie dropped to a six-month low on the talks of rate hike in the U.S. and U.K.

Bank of England Governor Mark Carney suggested that rate hike in U.K. is possible as early as next spring. In addition, the U.S. is set to end its asset purchase program at the end of October.

Australian dollar closed at 91.65 U.S. cents and in stock trading turnover jumped to 793 million shares worth $4.79 billion.

ASX 200 index slipped 33.60 or 0.6% to 5,574.30 and the broader All Ordinaries index fell 33.80 to 5,574.40.

Stocks in Review

Australian Industrial REIT fell 0.5% to $2.15 after the real estate developer agreed to acquire an industrial development site of Erskine Park in western Sydney for $13.3 million to build warehouses.

Macmahon Holdings Limited climbed 4.5% to 11.5 cents after the mining services provider secured a new $317.5 million three-year credit facility.

The company said Commonwealth Bank of Australia and HSBC led the syndicate of bank lenders.

Kingsrose Mining Limited increased 1% to 49.5 cents after the gold producer said total revenue in the year ending in June plunged 81% to $3.97 million from $20.92 million a year ago period.

Net in the year swung to a loss of $24.2 million compared to profit of $0.2 million and diluted loss per share swung to 6.21 cents from earnings per share of 0.51 cents a year earlier.

Warrnambool Cheese & Butter Factory Co slipped 1.4% to $7.71 after the cheese, milk powder and butter producer reported revenue in the year ending in June climbed 22.7% to $608.54 million from $495.85 million a year ago period.

Net income in the year surged 367% to $24 million compared to $5.14 million and diluted earnings per share jumped to 38.1 cents from 13.6 cents a year earlier.