The Australian dollar extended its losses on concerns that the European debt crisis could worsen even after a deal to support Greece is finalized. The Australian dollar declined to 99.66 cents at 2:47 p.m. in Sydney, from 99.88 cents in New York yesterday.
Ã¢â‚¬Å“Risk-correlated currencies could trade sideways over the next month as we wait for more positive developments out of Europe,Ã¢â‚¬Â said Roland Randall, a Singapore-based strategist for rates and foreign exchange at TD Securities Inc., who expects the Australian dollar could fall as low as 92 U.S. cents. Ã¢â‚¬Å“A bigger budget deficit does weaken the outlook for New Zealand at a margin and therefore make it more vulnerable to rising risk aversion.Ã¢â‚¬Â
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