Currency values in Australia • Are you thinking Australia? | thinkingaustralia |
Local:
Sydney: Mon 12:14AM
Select Destination
Location Time Temp
Sydney12:14AM Mon16°
Melbourne12:14AM Mon13°
Brisbane12:14AM Mon19°
Perth10:14PM Sun14°
Adelaide11:44PM Sun
Hobart12:14AM Mon15°
Canberra12:14AM Mon
Darwin11:44PM Sun25°

news

Get our help FREE advice or find service providers with our ozdirectory

Currency values in Australia

26 July 2015 by News Desk

finance_creditcardsThe recent fall in value of the Australian dollar may not be good for some, but it’s proving a boost to the economy.

Since its peak of US$1.1080 in 2011 the Aussie dollar is now below US 75c and many expect the currency to fall below US70c and even reach as low as US60c over the next year.

There are a number of reasons for the fall in value – Commodity prices have fallen sharply, in line with a fall in global demand. The Reserve Bank of Australia index of commodity prices (based on Australia’s exports) has dropped over 52% in the past four years.

Another reason is the record low level for Australian interest rates. At 2%, rates are higher than most other industrialised economies. This lowers yields for foreign investors and has seen lower capital inflows into Australian markets.

On the plus side, the fall of the Australian dollar is providing a major boost to the economy. As the cost of imported goods and services has risen, domestic firms and exporters (particularly tourism, education, wine and manufacturing) are getting a substantial boost.

Experts forecast stronger economic conditions ahead and that the Aussie dollar has fallen far enough and could soon be poised for a move higher.



We use cookies on Thinking Australia

This website uses cookies to ensure you get the best experience on our website. Please confirm permission to use cookies. Cookie Policy Privacy policy