The Australian Dollar has fallen to its lowest level since September 2010 as the currency’s rout continues as investors favour the American currency.
The Australian Dollar to US Dollar (AUD/USD) Exchange Rate is currently in the region of: 0.9168
The ‘Aussie’ fell by as much as 0.7% against the US Dollar
The ‘Aussie’ fell by as much as 0.7% early on Monday sending the currency tumbling further. The declines come after Federal Reserve Chairman said that the US Central Bank could begin to slow down its quantitative easing programme this year and end it completely in 2014, if the US economy continues to show signs of improvement.
The currency’s depreciation is being hailed as a positive thing as Australian exporters will benefit at a time when the country’s economy is beginning to show signs of a slowdown.
Australian Prime Minister Julia Gillard said an extension of recent declines in the ‘Aussie’ would help rebalance growth.
“A sustained depreciation of the Australian dollar in those circumstances would be a very good thing, to stimulate further growth in the non-mining sector, while the firms that have adjusted to the historically high dollar stand to benefit from its fall,” Gillard said in a speech in Canberra today.
The Australian Dollar is expected to continue its declines
The markets are expecting the Australian Dollar to continue its declines against its US counterpart with future traders increasing their bets on such a move. The difference in the number of wagers being made by hedge funds and other speculators outweighs those expecting a rise. The number of bets for declines is now at its highest level since January 1993.
The next major data for Australia will not be until July 2nd where the Australian Reserve Bank will announce its latest interest rate decision.
Current Australian Dollar (AUD) Exchange Rates
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The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9168
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5965<
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4293<
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.8410 <
Correct as of 09:40 am GMT
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