Oil prices have dropped to the lowest level since September when Brent crude fell to $US27.45 per barrel on Wednesday.
The fall is the latest sign of a global slowdown in the global economy and could weigh on prices in the coming weeks.
The oil price is also falling to a six-year low, when prices averaged $US26.50 per barrel, according to Bloomberg data.
The dollar was trading at $US0.7575.
The Australian dollar was also lower against the greenback.
“This will make it hard to see the dollar going down in the long term,” said Nicky Hooper, senior economist at IG Markets in Sydney.
The Australian dollar is down more than 20 per cent against the US dollar since July. “
But I think it is also very much possible that the oil market could slow down even more in the next few months.”
The Australian dollar is down more than 20 per cent against the US dollar since July.
The Bank of Australia has been predicting that a drop in the US economy will lead to a decline in the dollar.
The central bank has said that the Australian dollar could fall by another 10 per cent by the end of this year.
Australia’s economy has been battered by falling global oil prices and a sharp drop in manufacturing as well as falling demand from China.