Australian dollar dips below parity with greenback

The Australian dollar dropped below parity with the greenback on Monday for the first time since December as political turmoil in Greece led traders to sell riskier assets.

At 1224 (0224 GMT), the "Aussie" hit 99.99 US cents, down from 100.14 cents at the start of trade, although it recovered to inch back to 100.04 late in the session.

The currency last dipped below parity with the US dollar in December after United States Federal Reserve left interest rates near zero, coupled with concerns about Greece.

Analysts said the latest drop was down to investors returning their money to safe-haven currencies amid fears Greece will exit the eurozone.

"This issue in Greece is really weighing on the market at the moment," Easy Forex senior currency dealer Francisco Solar said.

Emergency talks in Greece to form a coalition government were expected to continue Monday in a bid to avert a repeat ballot after inconclusive elections a week ago.

However, the head of a small moderate leftist party seen as the last hope for a coalition said ahead of the talks that there was no hope of a Greek unity government being formed.

"It's unprecedented, we really don't know what the implications of a country being ousted from a monetary union are," said Solar.

"So at the moment markets are pretty jittery."

Australia's commodities boom and relatively high interest rates over the past two years saw the Aussie soar past parity, hitting a record of 110.81 cents in July 2011.

It only retreated significantly after Japan's March 11 earthquake-tsunami and a downgrade of the United States' debt rating by Standard & Poor's.

Canberra has previously warned that the Aussie is likely to remain at a high level for years as it comes to be seen as a safe bet amid global turmoil.

But the strong dollar -- which first breached parity with the greenback in October 2010 -- is squeezing some local industries, with tourism, manufacturing and education exports particularly hard-hit.

Loading...

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • ‘Taklub’ wins jury prize in Cannes
    ‘Taklub’ wins jury prize in Cannes

    The Yolanda-inspired film “Taklub” has won a special award at the Cannes Film Festival in France. The advocacy film, which had a successful premiere last Tuesday under the festival’s Un Certain Regard section, is directed by 2009 Cannes best director Brillante Mendoza and top-billed by Nora Aunor. The award cited the film’s sensitive portrayal of individuals and communities in the Philippines fighting to continue living despite natural disasters exposing them to suffering and death. …

  • Orphan tops chemical engineering board exam
    Orphan tops chemical engineering board exam

    A 21-year-old orphan from Capiz topped the chemical engineering board examinations held this month. Remington Salaya, a cum laude graduate of the Central Philippine University in Iloilo, ranked first in the board examinations with a score of 83.30 percent. Out of 405 chemical engineering graduates who took the exam in mid-May, 239 passed. …

  • A sunset party for APEC delegates
    A sunset party for APEC delegates

    Greeted by the beat of Ati-atihan drummers, delegates of the Asia-Pacific Economic Cooperation trade ministers meeting enjoyed a welcome dinner and cultural presentation at sunset yesterday. Dubbed FuntaSea, Shangri-La Boracay Resort and Spa’s Banyugan Beach was transformed into a fantasy island, complete with mermaids, fire dancers, and choreographed paraws (sailboat) representing the best of Boracay. With APEC meetings being held all over the Philippines, each presentation is conceptualized …

  • UN chief urges peaceful solution of sea dispute
    UN chief urges peaceful solution of sea dispute

    United Nations Secretary-General Ban Ki-moon called Friday for a peaceful solution to territorial disputes in the South China Sea, where China’s increased assertiveness has alarmed its smaller neighbors. In Manila, Presidential Communications Operations Office Secretary Herminio Coloma Jr. appealed to China to respect various international agreements on freedom of navigation and aviation. Coloma’s call came in the wake of an incident Wednesday where Chinese naval forces warned a US …

  • Phl seeks transparency, inclusivity in Asean-China Center
    Phl seeks transparency, inclusivity in Asean-China Center

    Philippine Ambassador to the Association of Southeast Asian Nations Elizabeth Buensuceso has called on participants of the ASEAN-China Center (ACC) brainstorming session to vigorously work on promoting ASEAN-China relations under the principles of inclusivity, transparency and centrality. The brainstorming session, attended by the ACC’s joint council and joint executive board members, also involved a midterm review of ACC’s work since its establishment in 2011. The ACC aims to promote …

  • Lebanon tightens rules on HSW repatriation
    Lebanon tightens rules on HSW repatriation

    Distressed Filipino domestic helpers in Lebanon may find it more difficult to return home. The government of Lebanon has tightened the rules on repatriation of distressed household service workers (HSWs), Labor Secretary Rosalinda Baldoz reported yesterday. Citing a report from the Philippine Overseas Labor Office (POLO), Baldoz said the Lebanese government opted to re-impose a previous policy requiring investigation into every case of HSWs who ran away from their employers and sought …

  • Army execs face attrition over promotion quota
    Army execs face attrition over promotion quota

    Dozens of Philippine Army officials may be removed from the service due to a promotion quota system in the Armed Forces of the Philippines, according to AFP chief Gen. Gregorio Pio Catapang. In a letter to Defense Secretary Voltaire Gazmin, he requested that the 30 percent promotion quota – which means that only 30 percent of those eligible for promotion in a given year will actually be promoted – in the Army be raised to 50 percent. Under the military’s attrition law, middle-grade officers …

  • Philippines backs support for small enterprises at APEC meet

    MANILA, Philippines (AP) — The Philippines' top trade official on Saturday called for support for the integration of micro, small and medium enterprises in global trade, which he said would help reduce poverty and inequality in the Asia-Pacific region. …

POLL

Should Aquino be held accountable over the Mamasapano operations?

Loading...
Poll Choice Options