The Australian dollar has hit a fresh 11-month low as investors continue to pile onto its US counterpart.

The currency fell to 98.28 US cents on Thursday afternoon, a level not seen since June 2012.

By 1700 AEST it had recovered a little ground and was trading at 98.37 US cents, still down from 98.72 cents on Wednesday afternoon.

The currency has dropped around four US cents in the past week.

Easy Forex senior currency dealer Francisco Solar said the Australian dollar pushed below a key support level at 98.50 US cents late in the afternoon, meaning it could fall further during overnight trade.

He said the main reason for the currency’s weakness was a surge in demand for the US dollar, though falling commodity prices and last week’s interest rate cut from the Reserve Bank of Australia were also weighing it down.

“It (the move lower) is just in keeping with the negativity surrounding the Aussie dollar at the moment, and the positivity surrounding the US dollar,” he said.

“It seems to be all one-way momentum at the moment.”