The Australian national currency has fallen against the US dollar after the Bank of Australia indicated that it might consider reducing interest rates in the country.

Reserve Bank of Australia Governor Glenn Stevens expressed the central bank would take steps when needed. He said in Tokyo that the central bank has policy "ammunition" left and will use it when requires. The comments, at the International Monetary Fund’s annual meeting in Tokyo, sparked hopes that the RBA might reduce interest rates in November.

The Australian dollar was trading at the level of $US1.0220 after touching a low of $US1.0202. The country’s currency had touched $US1.0149 on October 8, which is its lowest level since July this year. The fall came after RBA governor on Friday that there is scope to further lower borrowing costs in the country.

The RBA has lowered the benchmark lending rate by a quarter of a percentage point to 3.25 percent. The bank started reducing borrowing costs from 4.75 percent in November of the previous year.

Meanwhile, the New Zealand dollar touched 81.30 U. S. cents, which is its lowest since 11 September. The NZ Dollar was trading 0.2 percent down at 81.49 U. S. cents.