The Australian Dollar has continued its decline against the US Dollar, falling by more than 1% after yesterday’s worse-than-expected economic growth figures.
The Gross domestic product figures showed that yearly growth in the Australian economy slowed to just 2.5% in the first quarter of 2013, its weakest level of growth in two years. The slowdown is being blamed on a combination of the strength of the Australian Dollar, a slowdown in China and the nations mining boom coming to an end.
A number of economists are forecasting further a slowdown for the country’s economy and many are also forecasting that the Reserve Bank will choose to make further cuts to interest rates.
Bank of America Merrill Lynch chief economist Saul Eslake says the Dollar has further to fall.
“Even if it were to fall another, say, three or four cents over the next few months, while that would be helpful at the margin, it still leaves it a long way above its long-term average,” he said.
But economists also say further falls in the dollar should boost vital parts of the economy that are being relied on to bridge the gap as the mining boom winds down.
A lower valued currency will be a big boost to the Australian tourism industry as it will encourage foreigners to visit and will certainly be of assistance to consumers struggling to cope with the high cost of goods and services.
Current Australian Dollar (AUD) Exchange Rates
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9494
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7235
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6146
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1926
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0532
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.3820
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.6269
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.8384
(Correct as of 09:40 am GMT)
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