The Australian dollar fell by more than one third of a US cent after the central bank cut its interest rate by 0.25 per cent to 3.25 per cent at its October board meeting.

The reduction takes the cash rate to its lowest point since October 2009.

The Australian dollar was trading at 103.69 US cents at 1429 AEST, just before the decision was announced, and fell to 103.25 US cents at 1435 AEST.

The currency finished Monday’s local session at 103.60 US cents.