Aussie dollar falls below Singapore dollar for first time since 2002

The Australian dollar weakened below parity against the Singapore dollar for the first time since 2002 on Monday morning.

One Australian dollar could buy $0.9981 Singapore dollars as at 11:20 a.m. on Monday.

The once-mighty Aussie dollar has been battered by slowing global demand for the country’s commodities exports and a string of disappointing economic data in recent months.

The Aussie dollar on Friday slumped to its weakest level in six years against the US dollar as a gauge of Chinese manufacturing unexpectedly fell to the lowest in 15 months the most accurate forecaster of the currency cut its forecasts.

A slowdown in China has been a major contributor to the Australian dollar’s weakness.

Australia’s mining and agricultural sectors make up a significant share of the country’s economy, with the products to be exported mainly to the East Asian market.

Economists say the outlook for the Australian economy remains cloudy, particularly as the commodities boom that fueled the country’s growth in the decade to 2013 is now over.

Rating agency Standard & Poor’s said it may lower Australia’s credit rating if the country’s budget does not improve.

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