The Australian dollar dropped to a new six-year low yesterday on news of the referendum’s result.

Australian shares are down more than 1 per cent on increased ‘Grexit’ fears and the Australian dollar has fallen around two cents in two trading days to be at its lowest level since 2009.

Fetching around 76.5 US cents as Australian traders ended their week, the local currency lost about a cent in European trade on Friday ahead of Greece’s vote.

The Australian dollar then lost around another cent as traders returned to their desks on Monday morning, after the Greek population resoundingly rejected the austerity measures proposed by the nation’s international creditors as a condition of further bailout funds.

In early trading the dollar was buying US74.78¢, down 2 per cent on the same time on Friday, and its lowest level since May 2009.

The sell-off reflects a fresh flight to safe haven assets by investors who fear Greece’s rejection of fiscal reforms in return for EU bailout funds could lead to financial chaos in Europe in the coming months.

Source: The New Daily