The Australian dollar fell to its lowest in over three weeks on Tuesday as warnings from the Federal Reserve chief about inflation lifted the US currency and battered bonds around the globe. "Bernanke's concern about inflation has pushed the US dollar up as markets anticipate increases in interest rates in the US later this year," said Joseph Capurso, currency strategist at Commonwealth Bank.
The Aussie dollar was at $0.9490/93 against the US dollar, down from $0.9590/95 late here on Friday. Markets were closed on Monday for a holiday. The Aussie fell to a low of $0.9466 earlier in the session. The Aussie also slipped against the yen as regional stock markets extended losses, dogged by inflation worries.