At 07:00 (AEST), the Australian dollar was buying 70.74 U.S. cents, down from 71.68 U.S. cents on Wednesday.
The drop in the Aussie mirrors a surge by the U.S. dollar which reached a two-month high, remaining a haven for investors as equity prices took a hit.
"Equity sentiment remained positive in Europe but quickly soured in the U.S. as Fed speakers urged further fiscal support for the economy. The U.S. dollar rose across the board," Westpac Bank economists said in a morning note.
At 09:30 (AEST), the local unit was buying 70.66 U.S. cents.
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