The Australian Dollar fell to its lowest level in a month against the U.S. Dollar and a 2-month low against the Japanese Yen as a drop in stocks reduces investor confidence to purchase assets with high yields, also known as carry trading. The Down Jones Industrial Average fell 4.2 percent last week, causing stocks all over the world to fall. ''The focus is still to the downside for the Australian dollar,'' said Tony Morriss, a currency strategist at Australia & New Zealand Banking Group Ltd. in Sydney. ''Pressure is likely to remain on carry trades in the near-term.''
In forex trading, the Australian Dollar fell to 84.72 U.S. cents before trading up to 85.16 U.S. cents. The Australian Dollar dropped to 100.68 Japanese Yen from 101.03 Yen.
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