The S&PASX 200 sank to today’s low of 4778 points in opening trading before wavering around 4800 and closing 1.1% lower at 4781.

Analysts have focused on the influence of the rapidly falling Australian dollar (last trading at US94.56c) which touched as low as US94.45c today and matching its lowest value since October 2011.

Investors are expected to continue to drop the currency as Australia’s interest rate proves less advantageous against foreign markets.

A decision earlier this week by the Reserve Bank of Australia to hold the cash rate at 2.75% is being cited as a contributing factor in the Aussie’s increased susceptibility to being sold off.

“The RBA policy statement was a green light for A$ bears and they are using it to keep right on going,” Societe Generale global strategist Kit Juckes was quoted as saying in a Bloomberg report.

“The move has only just begun and remains the best way of positioning for softer Chinese growth.”

This coincided with reports today that a Chinese crackdown on fake export invoices is likely weighing on global economic growth by cutting the country’s trade figures.

Chief China economist at Nomura Holdings in Hong Kong Zhang Zhiwei told the news service that the regulation effort “will bring the inflated export growth down to the real trend, which is single digits”

Mining companies experienced continued pressure under these cues with the basic materials sector slipping 1% on the S&P/ASX 200.

BHP Billiton fell 0.1% to $A33.77, while Rio Tinto eroded 0.5% to close at $54.07.

Newcrest Mining extended its recent losses with a 6.9% slide to $13.36, even as other gold companies bounced on an overnight price rise in the yellow metal to dominate the few positive positions on our watchlist.

Mineral sands heavyweight Iluka Resources tumbled 4.3% to $10.93 on the session, while iron ore companies Aquila Resources, Arrium and Atlas Iron followed Fortescue Metals Group into the red.