Call for Australia to adopt US dollar

The head of Australia's stock exchange said the country should replace its battered currency with the US dollar to bolster its economy and end damaging currency fluctuations.

Australian Stock Exchange chairman Maurice Newman says scrapping the Australian dollar in favour of the stronger American greenback would solve the nation's currency problems.

The beleagured Australian dollar has been battered by the US dollar and a lack of interest from foreign investors.

It has fallen by 14% against the US dollar this year, and is now worth 48.68 US cents.

Newman made the comments at a meeting of the Australian Institute of Company Directors.