It was a month many Australian investors would rather forget as heightened worries about Greece and other debt-laden European economies sent stock markets and the dollar plunging.
The benchmark ASX200 share index ended about 7.3 per cent lower for May – the worst monthly return since Europe’s debt crisis erupted in May 2010.
The Australian dollar edged back above the 97 US-cent level after earlier touching six-month lows on a global retreat to the greenback.
“Spain is becoming a huge problem,” said Derek Mumford, a director in Sydney at Rochford Capital. “A lot of money is going to be needed to bail them out. The Aussie (dollar) will inevitably be dragged down to a very important support area at 94.50 to 95 US cents.”