A$ dips to 70US¢
03 September 2015
The A$ yesterday continued to slide, hitting 70US¢ (Reserve Bank of Australia) – the lowest value recorded since the Global Financial Crisis, in 2009.
Low hard commodity prices have seen the Australian mining boom slow and this has had flow on effects to foreign exchange rates. The trade flow impacts have been further compounded by relatively low interest rates in Australia and strong economic performance in the US.
However, while the A$ has slipped against the greenback, Australia is not the only commodity exporting nation to record a devaluation in the currency. In particular, the Brazilian Real, at 27US¢, has halved from where it peaked in 2011 and is currently back about 40% year-on-year (XE.com). Brazil is another large beef exporting nation, however due to market access constraints, while not indefinitely guaranteed, it doesn’t compete directly with Australia in some markets.
The decline in the Australian currency has been most starkly noticed against the greenback but other important Australian red meat importing countries’ currencies have also appreciated against the A$.
In summary, as of 2 September 2015, the A$ averaged:
- 70.21US¢, back 24% year-on-year
- 84.27¥ (Japanese Yen), back 13%
- 829.00₩ (Korean Won), back 12%
- 4.47¥ (Chinese Yuan), back 22%
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