Share market nears two-month high but Australian dollar drops to three-year low
ABC July 31, 2013, 5:54 pm
The dollar has dropped to a three-year low on bets the Reserve Bank will cut the official interest rate next week.
But the share market edged up to a near two-month high, although it was well down on the day's strong early gains.
The All Ordinaries Index added nine points to close at 5,036 and the ASX 200 rose by five points to 5,052.
The major miners took a hit from a fall in commodity prices overnight; Rio Tinto lost 0.4 of a per cent and Fortescue Metals lost 1.4 per cent.
Shares in BHP Billiton closed down 0.9 of a per cent to $34.64.
It has cancelled the sale of its Gregory Crinum complex in central Queensland after it could not find a buyer for the coal mines.
BHP closed the loss-making Gregory open-cut mine at the site late last year as coal prices plunged, but the Crinum underground mine remains open.
The site is owned by the BHP Mitsubishi Alliance joint venture.
Shares in Australia's biggest cattle firm Australian Agricultural Company closed down 4.2 per cent at $1.15.
Its outspoken chief executive David Farley is stepping down after nearly four years in the role by agreement with the AACo board.
AACo chief financial officer Craig White will serve as interim chief executive until a replacement is found.
In economic news, figures from the Reserve Bank show lending to households and businesses rose by slightly more than expected in June.
The figures show total lending to the private sector rose by 0.4 of a per cent last month, led by a rise in borrowing by businesses.
About 5pm (AEST) the dollar was at a three-year low of 90.1 US cents. It was also buying 68 euro cents, 88.3 Japanese yen and 59.3 British pence.
West Texas crude oil closed slightly lower at $US103.11 a barrel, Singapore Tapis crude oil eased to $US113.70 a barrel and spot gold was higher at $US1,332 an ounce.
