The Australian Dollar is set to continue its fall against the US Dollar and other major currencies after the Australian Central Bank warned that the Australian Dollar remains too high even after its recent steep fall.
“The message is clear, the Reserve Bank of Australia would like to see more and more prolonged currency weakness,” said Todd Elmer, Citi’s head of G10 FX Strategy for Asia, excluding Japan.
The ‘Aussie’ weakened against all of its major peers after the Reserve Bank of Australia chose to maintain its benchmark interest rate at the record low level of 2.75%. Against the US Dollar the Australian Dollar recovered some of its lost ground as expectations eased that the Federal Reserve will taper its monetary stimulus programme.
The Bank also said that in its monthly policy statement that it has the capacity to cut rates further if needed. The bank’s comments on the Aussie Dollar, which has fallen around 6% in the past month against the ‘Greenback’ also, caught traders’ attention.
“The exchange rate has depreciated since the previous Board meeting, although, as the Board has noted for some time, it remains high considering the decline in export prices that has taken place over the past year and a half,” Governor Glenn Stevens said in a statement.
Current Australian Dollar (AUD) Exchange Rates
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9673
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7399
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6324
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.2064
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0337
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.3515
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.5812
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.8288
(Correct as of 11:40 am GMT)
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