The dollar has fallen after speculation of a downgrade to Germany's top credit rating.
At 5pm AEST today, the currency was trading at $US1.0317, down from $US1.0363 yesterday.
ANZ foreign exchange strategist Andrew Salter said the Aussie fell overnight on rumours that Germany's sovereign debt would be downgraded by a credit ratings agency and that hurt risk sentiment across markets.
"That spooked markets quite a bit," he said.
The rumour turned out to be true, though the downgrade came from the comparatively smaller Egan-Jones ratings company and not from any of the three major ratings agencies, Moody's, Standard & Poor's or Fitch.
Mr Salter said the local currency remained weak throughout today's session, falling to as low as $US1.0269 before noon.
