It is believed that the Australian dollar is headed for its highest fall in a week since the September of 2011 on concerns that that Australia's yield advantage over the US assets would fall.

The Australian national currency has fallen to its lowest level against the US dollar as the US Federal Reserve indicated that it might start rolling back its stimulus and on concerns that the slowdown in China might convince the Reserve Bank of Australia to cut borrowing costs.

The Australian currency rose 0.1 per cent to 92.06 US cents this morning in Sydney. The currency had fallen 1.1 per cent to 91.97 cents, which is its lowest level since 8 September, 2010. The currency has already fallen 3.8 per cent this week. Meanwhile, the yield on the country's benchmark 10-year government bond increased 0.03 percentage point to 3.67 per cent after touching 3.69 per cent.

Meanwhile, The International Monetary Fund (IMF) has indicated that it might consider giving Australian dollar the status of being a reserve currency, in an effort to boost its value. Experts have said that the Australian economy can no longer be classified as an emerging economy as it has developed to a level that its currency can be given the status of a reserve currency, much like the US dollar, the yen, the pound, the Swiss franc and the euro.