The Australian currency (Aussie) plunged to the lowest level in a year as the stock market around the world slumped amid the global economic is losing momentum because of the European debt crunch expands during the period, increasing the demand for safe haven.

Meanwhile, Aussie continues its downside movement for a third day versus its U.S. counterpart before the Reserve Bank of Australia meeting to decide on policy, while the expectations indicated that the Bank will cut in interest rates to support the nation's recovery.

On the other hand, the low yielding currencies such as Japanese yen increased against the major counterparts, while the shared currency declined to the lowest level in more than a decade vs. the yen before reports that may indicate a slowdown in the European economy, increasing concern the region's debt crisis is damping prospects of recovery.