THE dollar tumbled to its lowest level in eight months after China announced new measures to cool property prices, fuelling speculation that demand for Australia's commodities might weaken.
The Aussie also fell after local data showed building approvals dropped sharply for the second month in a row in January, tempering hopes of a recovery in the nation's housing industry.
At 3.45pm AEDT, the Aussie bought $US1.0123, down from $US1.0229 late in local trade on Friday. It traded as low as $US1.0117 in Asia, the lowest since July 12. Australia's benchmark share index also fell, closing down 1.5 per cent.
China's announcement of the new measures led to steep falls on Chinese benchmarks, including the Shanghai Composite Index, which fell as much as 2.9 per cent, and the Hong Kong Hang Seng Index. The new rules include higher down-payments and mortgage rates in cities where house prices have risen too quickly, as well as stricter enforcement of a 20 per cent capital-gains tax on property transactions.
