Aussie dollar jumps as Scott Morrison wins leadership

| 24.08,18. 03:01 PM |

Aussie dollar jumps as Scott Morrison wins leadership

The Aussie dollar fell heavily on Thursday as the political crisis broke. (iStock)

The Australia dollar has jumped on news Scott Morrison has won the ballot to become Australia's next prime minister, pending being sworn in by the Governor General.

The Aussie dollar moved sharply higher to 72.85 US cents when the former treasurer's victory was confirmed at about 1250 AEST.

It had been trading between 72.39 and 72.506 US cent ahead of the Liberal party room vote.

Mr Dutton, Mr Morrison and Ms Bishop contested a three-way contest to replace him, with Ms Bishop eliminated first after getting the lowest vote.

Mr Morrison defeated Mr Dutton in the next round by five votes, 45 to 40.

The original spill motion was carried 45 votes to 40, meaning almost half the partyroom wanted Mr Turnbull to stay in power.

Earlier today, the Australia dollar is at 72.55 US cents, down from 72.96 US cents on Thursday.

Rakuten Securities Australia chief operating officer Nick Twidale said a victory in the Liberal party room vote for Peter Dutton as new PM "will most probably result in further downside for the Aussie dollar in the short term".

"He represents a move to the party's right and what many see as a more likely loss at the next general election," Mr Twidale said in a statement.

"If the one of the more moderate alternatives in Scott Morrison or Julia Bishop take over then we'll likely see a bit of a relief rally back towards 0.7300 for the beleaguered currency, which saw its biggest loss in a year yesterday."

(Votes: 0)

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