The Australian dollar has sunk to a two-year low amid global growth concerns and expectations of a bigger than usual interest rate cut tomorrow.
The domestic currency fell to $US0.7650 at 1030 AEDT, its lowest level since November 17, 2006.
It is also the Australian dollar's lowest point since the onset of the global credit crunch in mid-2007.
The local unit dropped to $US0.7676 in August 2007 in the early days of the credit crunch.
Bank of New Zealand currency strategist Danica Hampton predicts the Australian dollar could hit $US0.7620 today.
"The risk is to the downside," she said from Wellington this morning.
The political passage of the US government's $US700 billion ($908 billion) plan to buy toxic mortgage assets over the weekend failed to allay financial market fears of a global economic slowdown.
On Friday night, the Dow Jones Industrial Average fell 157.47 points, or 1.5 per cent, to end at 10,325.38.
All 19 economists surveyed by AAP last week forecast a rate cut tomorrow, with eleven tipping a 50 basis point cut.
A half a percentage point rate cut would be the first of that magnitude since April 2001, as the world economy slowed after the tech wreck.
The RBA board is due to meet tomorrow morning to consider the interest rate issue, with the outcome to be released later, at 1430 AEDT.