The Australian dollar has fallen one US cent after the central bank lowered its inflation forecast and Greece's moves to avoid a default on its debt suffered another setback.
At 1700 AEDT, the Australian dollar was trading at 107.13, down from 108.13.
The Australian share market closed lower as investors pondered possible weakening in the resources sector, a hold on interest rates this week, a soaring Aussie dollar and Greece's debt crisis.
A lower inflation forecast means there is still plenty of scope for the Reserve Bank of Australia (RBA) to drop the official interest rate further, economists say.
ANZ Banking Group has raised its variable interest rates for retail mortgages and small business loans by 0.06 per cent.
The move follows the Reserve Bank of Australia's (RBA) decision on Tuesday decided to leave the cash rate on hold at 4.25 per cent.
Banks clawed back margins on home loans in late 2011 with average interest rates on new variable mortgages declining by less than the overnight cash rate, the Reserve Bank of Australia (RBA) says.
The US stock market finally got a deal in Greece, but it didn't produce much of a rally.
US stocks rose on Thursday morning after Greece announced an agreement to cut costs and keep from defaulting on its debt next month, an event that could have shocked the world financial system.
The Australian dollar was marginally lower after economic data showed Chinese inflation at its highest level in three months.
At 1700 AEDT, the Australian dollar was trading at 108.13, down slightly from 108.18 yesterday.
The Australian share market closed slightly lower as investors mulled over mixed earnings results, the ongoing Greek debt crisis and whether or not China would cut its interest rates.
The Australian share market has opened weaker with the stocks of major companies BHP Billiton and Telstra weighing on sentiment after weaker-than-expected profit results.
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