The Australian dollar dropped to the lowest in almost a month as geopolitical tensions over Ukraine curbed demand for higher-yielding assets and before a private report that may show Chinese manufacturing weakened.
The Aussie slid versus most of its 16 major counterparts while benchmark government bond yields fell to four-week lows before Reserve Bank officials meet tomorrow and ahead of gross domestic product data on March 5. New Zealand’s currency declined from a 1 1/2-month high reached last week.
“We’re starting the week with a risk-off tone from the events over the weekend, with the Russian and Ukrainian tensions escalating,” said Emma Lawson, a Sydney-based senior currency strategist at National Australia Bank Ltd. “It tends to be on geopolitical risk that currencies like the Aussie do tend to underperform.”
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