The Australian dollar fell to a four-month low after equities markets suffered heavy losses in overnight trade.

At 6.30am AEDT the local unit was trading at 102.25 US cents, down from 102.35 cents at yesterday’s local close.

Early this morning the Aussie dropped to 102.21 US cents, its lowest level since October 15, 2012.

US and European stocks fell more than half a per cent over concerns about a possible early end to US economic stimulus measures and disappointing eurozone business data.