THE Australian dollar has fallen as investors react to a stand-off between eurozone nations and the owners of Greece's debt.
At 6.30am this morning the local currency was trading at US104.80c down from US104.97c on Tuesday afternoon.
It fell as low as US104.30c overnight as European finance ministers drew a line in the sand over negotiations with owners of Greek bonds.
Greece is trying to convince its creditors to swap their bonds for longer-term debt with a lower rate of interest.
Without a deal, Greece will be unable to make its next repaymen,t, due in March, and will be forced to default on its debt.
However, hopes for a deal between the two parties were fading last night after European finance ministers insisted Greece pay less than four per cent interest on the new bonds.
Meanwhile, the Australian share market is also set to open flat due to the stand-off.
At 6.35am this morning the March share price index futures contract was up eight points at 4,200.
Oil and gold also edged down as a result of the Greek debt concerns.
In today's economic news, the Australian Bureau of Statistics releases the consumer price index data for the December quarter and the Westpac-Melbourne Institute Leading Indexes of Economic Activity is due out.
In equities news, Alesco Corporation posts half-year results while Petsec Ltd posts December quarter results.
