The Australian dollar fell 0.44 percent

The Australian dollar fell 0.44 percent in early trade on Monday on political uncertainty after weekend elections failed to produce a clear winner.

The dollar was trading at 88.63/66 US cents, dropping from Friday's close of 89.03/06, after the knife-edge polls which looked set to end with the first hung parliament since World War II.

The Australian dollar fell 0.44 percent in early trade on Monday on political uncertainty after weekend elections failed to produce a clear winner

Bank of New Zealand currency strategist Mike Jones said the political situation had dealt the currency a "heavy blow".

"It looks to remain pretty heavy into the first part of this week as the uncertainty descends into the Australian political situation," Jones said.

Economists say Australian share prices are also likely to take a hit from the unusual turmoil in a country which is known for its stability and sailed through the financial crisis without entering recession.

The uncertainty will "likely add to jitters in the Australian share market and in the Australian dollar in the week ahead," AMP Capital Investors chief economist Shane Oliver said.

source AFP

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