The Australian share market fell sharply on Monday following significant falls from the country’s big banks and major miners.

The benchmark S&P/ASX200 index was down 104.3 points, or 2.02 per cent, at 5,066.2 points.

Energy stocks weighed on the market most, losing 2.41 percent.

Resources and bank stocks led the declines, with BHP Billiton falling 2.5 per cent or $0.61 to $23.85. Newcrest Mining has resumed operations at its Ridgeway gold mine in regional NSW, after mining was suspended on September 6 following the death of a mine worker.

Financials retreated 1.99 percent.

Qantas also made gains, rising $0.03 to $3.66.

New Zealand-based Dairy exporter Fonterra has cut 750 jobs as part of a restructuring to cut costs.

Consumer staples fell 1.48 percent.

The Australian dollar is lower as expectations of a USA interest rate hike year outweigh the support provided by gains on Asian share markets.

At 0630 AEST on Monday, the local unit was trading at 71.81 U.S. cents, down from 72.28 cents on Friday. The Fed’s comments indicating that recent global economic and financial developments may restrain economic activity somewhat also generated some negative sentiment. Rival Woolworths lost $0.32 to $24.50.

Materials slumped 2.41 percent.

The Fed last week held off on raising its interest rate but Federal Reserve Bank of Atlanta president Dennis Lockhart overnight confirmed the decision was close and expects a hike before the end of the year.

West Texas crude oil was weaker at $US44.68 a barrel, and Tapis Crude was at $US49.88 a barrel.