THE Australian dollar closed lower today after coming under pressure in the wake of an official interest rate rise in India and continued uncertainty in Greece.
At 5pm AEDT, the Australian dollar was trading at $US0.9136/40 down 0.88 per cent from Friday's close of $US0.9218/22.
During the day, the local unit moved between $US0.9126 and $US0.9158.
Commonwealth Bank economist Sarah Hoenig said the local unit remained under pressure after trading in a narrow range.
"It was mildly under pressure over the session in choppy trade," Ms Hoenig said.
"That was as equity markets dipped in reaction to the Bank of India news on Friday as well as continued concerns of Greek bailouts."
The Reserve Bank of India's (RBI) decision to lift two official rates on Friday depressed the currency market.
The Australian share market closed lower on Monday with declines across all industry sectors as investors reacted to a weak finish on overseas markets on Friday.
At 4.15pm AEDT, the benchmark S&P/ASX200 index was down 42 points, or 0.86 per cent, to 4,830.2 points, while the broader All Ordinaries index fell 42.6 points, or 0.87 per cent, to 4,847.5 points.
Ms Hoenig said the Australian dollar could continue to come under pressure during the offshore session.
"We don't have any market-moving data due out tonight, so the market should continue to focus on those developments."
She said the market was waiting for the Reserve Bank of Australia (RBA) speeches by assistant governor of economics Philip Lowe and governor Glenn Stevens.
Mr Lowe is due to speak on Thursday to the Australian Industry Group's 10th Annual Economic Forum in Sydney.
Mr Stevens will address the Association Cambiste Internationale (ACI) 2010 49th World Congress, also in Sydney but on Friday.
"They seem to be the most interesting upcoming domestic events," Ms Hoenig said.
Meanwhile, the Australian stock market has closed lower with declines across all industry sectors as investors reacted to a weak finish on overseas markets on Friday.
At 4.15pm AEDT, the benchmark S&P/ASX200 index was down 42 points, or 0.87 per cent, to 4,830.2 points, while the broader All Ordinaries index fell 42.6 points, or 0.87 per cent, to 4,847.5 points.
At 4.24pm AEDT on the Sydney Futures Exchange, the June share price index contract was 37 points lower at 4,855 points on a volume of 20,102 contracts.
The market opened down about 0.8 per cent at the start of trade and although it tried to make up ground during the day, rallies proved short-lived as investors displayed a lack of conviction about any upwards movement.
There were 17 stocks down for every 10 that had managed a gain on Monday.
CMC Markets market analyst David Taylor said investors were mostly sitting on the sidelines with "little incentive to take up long positions".
"The market was suffering fatigue and lacking nourishment from overseas markets," Mr Taylor said.
Bell Potter senior adviser Stuart Smith said worries about Greece, Spain and Portugal added to the negative tone on local markets.
"Sovereign risk has raised its head again and split the market when it probably shouldn't, to this degree anyway," Mr Smith said.
Among the more substantial declines on the S&P/ASX50 were Incitec Pivot, down 17 cents, or 4.8 per cent, to $3.37, and WorleyParsons, which was 83 cents, or 3.17 per cent, lower at $25.39.
AXA Asia Pacific ended up one cent to $6.30 after National Australia Bank (NAB) agreed to extend the terms deed for its bid to acquire AXA Asia Pacific until next Monday.
NAB finished down 19 cents, or 0.71 per cent, to $26.71.
