Rates At 0600 GMT Latest Change AUD/USD 0.9812 -0.34% AUD/JPY 77.73 -0.22% 6.255 Apr, 2015 2.35% -0.27 5.50% Mar, 2023 3.16% -0.15 10-Yr Spread To U.S. +148 bps +4 bps SFE June 3-Year Futures 97.65 +0.26 SFE June 10-Year Futures 96.985 +0.195 SYDNEY (Dow Jones)--The Australian dollar fell to its lowest level since late November on Friday as Asian shares fell after weak manufacturing data in the U.S. and fears of a Greek exit from the euro-zone continued to roil markets. South Korea's Kospi slumped to a five-month low, eliminating all its gains made in 2012. Shares in Tokyo and Sydney were also sharply weaker. "Uncertainty over Greece has resulted in widespread panic selling," said Stan Shamu, market strategist at IG Markets. "The key risk is that if the new elections on June 17 fail to produce a government with a mandate to continue with the EU-IMF program of fiscal austerity and structural reform, an exit of Greece from the EMU would be probable," he added. At 0600 GMT, the Australian dollar was at US$0.9812, down from US$0.9945 late Thursday, while against the Japanese yen it was at Y77.73 down from Y79.90. The gloom in world markets is prompting more confident calls that the Reserve Bank of Australia will cut interest rates a lot further in coming months. "We're on the precipice, said David Scutt, a trader at Arab Bank. "It is getting to the stage where we need the G8 to mobilise to calm the markets," he added. Su-Lin Ong, senior economist at RBC Capital Markets, described trading in capital markets as panicked saying risks for the economy are clearly skewed to the downside. "Amid a rapidly deteriorating global backdrop, the risk to our base case for another 50 basis points of easing this year is clear-sooner rather than later, and more rather than less," she said. The mood was further damped after the head of one of Australia's largest bank said funding markets are now closed. "Markets are closed again, and this is what happens in this sort of situation," ANZ Bank Chief Executive Mike Smith told a business conference. In the absence of any meaningful data next week, the European crisis is set to dominate the Australian dollar's moves, traders said. Yields on Australian government bonds fell to record lows Friday amid strong demand from investors seeking a safe haven from Europe's deepening debt crisis. Expectations for more interest rate cuts, a weakening currency and worries over global growth are fuelling demand for bonds issued Down Under. "Australian yields have continued to make new lows across the curve as the flight to quality bid has returned to global financial markets," said Sally Auld, interest rate strategist at JPMorgan. -By James Glynn, Dow Jones Newswires; 61-2-8272-4685; james.glynn@dowjones.com (Data provided by Reuters)

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