The Australian dollar has fallen to its lowest level since October 2011 amid weakness on global stock markets.
The currency dropped to a low of 95.11 US cents early this morning.
By 0700 AEST it had recovered slightly and was trading at 95.46 US cents, down from 95.83 cents on Wednesday afternoon.
The Australian dollar has lost more than two-and-a-half cents since Tuesday.
HiFX senior dealer Dan Bell said the currency fell overnight as sharemarkets in the US, the UK, France and Germany recorded heavy losses.
"There was a general turn in investor sentiment," he said.
"It was a classic risk-off move. The US dollar gained due to its safe-haven status and currencies like the Aussie weakened," he said.
Mr Bell said the Australian dollar could regain some ground during Thursday's local session, but was likely to face further downward pressure over the coming days and weeks.
