Create a free account, or log in

Australian dollar still above US87c, Shares fall: Economy Roundup

The Australian dollar has eased slightly in morning trade after the currency broke through the US87c barrier yesterday. The dollar has been pushed higher by a number of factors – rising commodity prices, predictions of higher interest rates and a weaker US currency. But a slide in commodity prices and equities has pushed the dollar […]
James Thomson
James Thomson

The Australian dollar has eased slightly in morning trade after the currency broke through the US87c barrier yesterday.

The dollar has been pushed higher by a number of factors – rising commodity prices, predictions of higher interest rates and a weaker US currency.

But a slide in commodity prices and equities has pushed the dollar down this morning from a 13-month high of US87.76c.

After a big week for investors, Australia’s sharemarket has also fallen in morning trade. The benchmark ASX-S&P 500 Index down 39.1 points or 0.8% to be at 4675.8 points at 12:00.

It’s been a tough morning for the big stocks. AMP shares fell down 2.1% to $6.16, while shares in BHP Billiton fell 1.7% to $38.92. Telstra shares were flat, while all of the four major banks traded lower.

The big corporate news came from ANZ, which announced it would abolish all “exception fees” (including overdrawn, dishonour and late fees) in a move that it says will save its customers $142 million.

ANZ’s move follows similar decision by the other banks.

In other news, ailing infrastructure group Babcock & Brown Infrastructure has entered a trading halt as it considers a new plan to recapitalise the group and cut its $9 billion debt load.

The announcement follows a report in The Australian newspaper, which said BBI may be considering an agreement with investors from international hedge funds.

Overseas, Wall Street stocks slipped slightly, with profit takers entering the market after a week of strong trading.

Shares of financials, energy and other sectors that have led recent gains lost ground. American Express Co, down 2.3% and Exxon Mobil Corp, down 0.7% were among the big drags on the market.

The Dow Jones industrial average fell 0.08% while the Nasdaq Composite Index was down 0.3%.