The Australian dollar plunged to a near 12-year low of 62.13 US cents amid the coronavirus pandemic that is shaking global financial markets.

The dollar had not sunk this low against the greenback since the GFC-lows of November 2008.

The early-morning fall came as the US dollar spiked overnight in what IG’s Kyle Rodda described as choppy trade.

“Traders (unwound) their positions in funding currencies like the Swiss Franc, Japanese Yen and Euro, in order to park their cash in USD’s,” Rodda said.

“Of course, the biggest hit in currency markets came to growth sensitive currencies (like the Australian dollar).”

At its nadir on Friday morning the Aussie had dropped more than 11 per cent from 70.31 US cents on January 1.

The currency had recovered to 62.93 US cents by 0908 AEDT on Friday.

The Australian share market is bracing for a seven per cent dive after global equities markets entered freefall on a US travel ban for Europe.