THE Australian dollar has fallen slightly after a downgrading of economic growth forecasts for the British economy.
The currency was trading at 104.61 US cents this morning, down from 104.74 US cents at yesterday's close.
In the UK, the Office for Budget Responsibility said the country's economy there would contract 0.1 per cent in 2012, compared to an earlier forecast for 0.8 per cent growth.
Growth forecasts for 2013 were cut to 1.2 per cent, down from an earlier prediction of 2.0 per cent.
British chancellor of the Exchequer George Osborne warned Britons that they faced an extra year of austerity measures, and said the nation's deficit would also take longer to cut than origianlly expected.