The Australian dollar is weaker amid escalating tension in Ukraine.

Early Monday, the local currency was trading at 92.76 US cents, down from 92.95 cents on Thursday, before the Anzac Day long weekend.

Growing concern over tensions between Russia and Ukraine saw stocks in Europe, Asia and the US close lower on Friday, dragging the Australian dollar lower, Westpac senior market strategist Imre Speizer said.

“The Australian dollar fell because Ukraine remained tense and there was the prospect of sanctions being imposed by Europe and the US,” Speizer said.

“Standard and Poor’s also downgraded Russia because of the capital outflows that the Ukraine situation is causing.”

Speizer said tensions in Ukraine would weigh on the local currency on Monday, capping the Australian dollar below 93 US cents.

The Group of Seven leading economies and the European Union are readying sanctions that could be announced as soon as Monday in a bid to raise the pressure on Russian President Vladimir Putin.