The Australian dollar has hit its lowest value since the start of the Covid-19 pandemic lockdown in March 2020.
The dollar was buying US62.65c just before 2pm on Tuesday, down 0.5 per cent in the past day.
Commonwealth Bank Global Markets said the dollar could test US62c this week as weaker commodity prices and heightened geopolitical tensions weigh, according to The Australian.
Meanwhile, iron ore prices dropped more than two per cent on Tuesday, after steel mills in China were ordered to reduce output by up to 50 per cent to ensure blue skies for congress.
Shares in BHP were 0.8 per cent higher to $40.37, Rio Tinto was up 0.1 per cent and Fortescue Metals retreated 0.4 per cent.
It comes after the Reserve Bank of Australia released its twice-yearly financial stability review on Friday and predicted economic growth would slow.
“In Europe, high and volatile energy prices are complicating the macroeconomic outlook and could exacerbate fragilities related to high sovereign debt and banking exposures in some euro area economies,” the RBA said.
“Emerging market economies that are commodity-importers or are more reliant on foreign currency funding are particularly vulnerable to financial stress.”
China has provided further policy support to boost the stressed property market, but the RBA warned the country’s challenges were complex.
“The outlook is increasingly uncertain,” the RBA said.