Why the Rio Tinto Limited share price is sliding

The Rio Tinto Limited (ASX: RIO) share price is 1.6% lower this afternoon at $64.88 as the Australian dollar continues to appreciate against the U.S. dollar on the back of a dovish outlook statement from Federal Reserve chair Janet Yellen.

Adding fuel to the Australian dollar fire is the Reserve Bank of Australia’s latest monetary statement on the macro outlook for Australia that has traders doubling down on bets that the bank’s next rate move will be to hike rates later in 2018.

Rio Tinto also today reconfirmed guidance that it will produce between 330 million to 340 million tonnes of iron ore in 2017. For the quarter ending March 31 2017 total Pilbara iron ore production was up 3% on the prior quarter, with “record quarterly bauxite production of 12.9 million tonne” which was 7% above the prior corresponding quarter.

The company’s quarterly production of copper also surged higher over a prior quarter that saw production slump due to strike action at the company’s Escondida mine in Chile. Copper prices are often seen as a proxy for global growth and surged higher overnight after China posted GDP growth of 6.9% to beat analysts’ expectations and provide more support for the local dollar.

Rio Tinto also confirmed that the deal to sign its Yancoal business to Coal & Allied for $2.69 billion is set to complete in the third quarter of 2017.

Are you planning on a blue-chip retirement?

If term-deposit rates stay low your lifestyle expectancy could stay low with them.

But you must act now. This above report on dividend shares is available for a limited time only, and your copy is 100% FREE. So don't miss out!

At The Motley Fool we know share markets can be volatile with President Trump and the great unknown of China front and centre. So we've handpicked 5 of our favorite term-deposit-crushing dividend shares to make your savings work for you.

Simply click here to receive your free copy of "Our top 5 ASX higher income shares for financial year 2018" right now.

The Motley Fool Australia has no position in any of the stocks mentioned. Motley Fool writer Tom Richardson has no position in any stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.