SYDNEY (Reuters) - Reserve Bank of Australia Governor Philip Lowe said on Friday he was surprised by the local dollar's reaction to news China's northern Dalian port has banned the country's coal imports.
The Aussie fell more than 1 percent to a 10-day low of $0.7070 on Thursday after Reuters reported that customs at the Chinese port had banned imports of Australian coal since the start of February.
"I wouldn't jump yet to the conclusion that this is something directed to Australia," Lowe said.
"It may well turn out to be that it's being driven by concerns about the environment in China and the profitability of the coking coal industry in China. We have to wait and see," he said in response to lawmakers' questions at a parliamentary economics committee.
(Reporting by Swati Pandey; Editing by Paul Tait)
