End-of-day summary:
The share market closed at a six-month low as a falling dollar and rising global bond yields overshadowed a Reserve Bank decision to leave benchmark rates on hold.
The ASX 200 dropped 89.8 points or 1.28% to 6943. The index shed as much as 125 points in early action before arresting its decline.
The index was unmoved by news that the RBA kept the cash rate target unchanged at 4.1% for a fourth month. The decision was widely expected after the bank flagged it would be patient before considering another hike.
New Governor Michele Bullock stuck to the measured language and outlook of her predecessor: "Some further tightening of monetary policy may be required to ensure that inflation returns to target in a reasonable timeframe, but that will continue to depend upon the data and the evolving assessment of risks."
The dollar dived more than 1% overnight as the greenback responded to a last-minute deal to avert a US government shutdown. The Australian 10-year government bond yield today jumped to its highest since 2011.
Gold miners, energy producers and utilities led today's retreat. Santos, Woodside and Newcrest were the worst of the heavyweights. Healthcare was the only sector to resist the bloodletting, thanks mostly to CSL.
