SYDNEY: The Australian dollar dipped below parity with the greenback Wednesday after the US Federal Reserve left interest rates near zero and the IMF warned Greece was facing deep risks.
The Aussie fell below the US$1.00 mark for the first time this month, touching 99.84 US cents in early trade on weak leads from the United States and Europe.
"AUD/USD is currently hanging at around parity after topping out at around 1.016 overnight," said IG Markets analyst Stan Shamu.
"There is significant downside pressure on the pair."
The commodities-linked Aussie has had a stellar run against the greenback in the past 12 months, hitting a record of 110.81 US cents in July.
It has only retreated significantly on a handful of occasions since then, most notably following Standard & Poor's downgrade of the US in August.
European stocks were mixed overnight as fresh jitters over the eurozone debt crisis offset a better-than-expected German investor confidence report.
But US stocks slumped after the IMF said it was not in talks with Greece for another bailout loan and warned that Greece's economy was at an extremely vulnerable point.
The fall continued when the Fed issued a policy meeting report that failed to inspire buyers.
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