The Australian dollar has slipped below 75 US cents, dropping more than half a cent as the greenback soars with the US dollar index up 1.1 per cent.
At 0635 AEST on Friday, the Australian dollar was worth 74.81 US cents, down from 75.53 US cents on Thursday.
The US dollar rose against a basket of major currencies, especially the euro which cratered as the European Central Bank signalled interest rate hikes were a long way off and vowed to keep sub-zero rates until 2019.
The bank’s unexpectedly dovish decision overshadowed its statement that it aimed to wrap up its crisis-era stimulus program at the end of 2018.
The ECB now plans to reduce monthly asset purchases between October and December to 15 billion euros until the end of 2018 and then conclude the program, Reuters reported.
The dollar index, which measures the greenback against six other top currencies, rose 1.1 per cent.
The Aussie dollar is also down against the yen but up against the euro.
CURRENCY SNAPSHOT AT 0635 AEST ON FRIDAY
One Australian dollar buys:
* 74.81 US cents, from 75.53 on Thuesday
* 82.78 Japanese yen, from 83.11 yen
* 64.59 euro cents, from 63.92 euro cents
(*Currency closes taken at 1700 AEST previous local session)