Dollar dives like a 'falling knife'
On the way down ... the Australian dollar over the past 10 trading sessions.
In just 10 days, the Australian dollar has fallen from US103¢ to US97.4¢. The sudden fall has been so sharp one currency strategist described it as a ''falling knife''.
The dollar has now fallen for five weeks in a row, and is on track for its worst weekly fall this week since November 2011.
So what's been driving the recent drop, and should we expect a rebound any time soon, if at all?
In short, the first trigger was the sudden rallying of the US dollar against the yen and other currencies last Thursday night in New York.
The US dollar broke through the significant psychological barrier of 100 yen and sent its Australian counterpart into free fall.
That pushed the dollar past its own psychological barrier of US101.50¢ and it didn't take long for the currency to drop through parity on Friday night. The Australian currency continued to fall over the past week, while the greenback kept strengthening....MORE
