THE dollar fell by almost a full US cent to a four-month low as the United States' credit downgrading caused traders to seek less riskier investments.
At 5pm (AEST) today, the dollar was trading at 103.55 US cents, down from 104.42 cents on Friday.
It was the first time the dollar traded below 104 US cents since April 12.
Since 7am (AEST) on today, the local unit traded between a low at 103 US cents and a high of 104.39 cents.
It reached a peak of 110.81 US cents on July 27, its highest level since it was floated in December 1983.
The domestic currency dropped on Friday night after Standard & Poor's reduced America's credit rating from the top-notch AAA to AA+ due to the failure of a bitterly divided US political leadership to reach a consensus on containing the country's escalating debt.
Asian equity markets were the red today, including Australia's benchmark S&P/ASX200 index that closed down 119.3 points, or 2.91 per cent, at a 25-month low.
