The Australian dollar is lower after downbeat comments from the head of the European Central Bank sparked some negativity on financial markets.

At 0635 AEDT on Friday, the local currency was worth 77.89 US cents, down from 78.26 US cents on Thursday.

Westpac Head of NZ Strategy Imre Speizer said ECB President Mario Draghi said inflation forecasts are likely to be lowered.

“ECB press conference comments caused a negative reaction in the EUR, which rippled to other currencies, and bond yields,” he said.

AAP

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