Worried about the health of the Australian dollar? You are, on this evidence, not alone:
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All is not well for the Australian diollar, as these graphs show.
article-article-bodyWorried about the health of the Australian dollar? You are, on this evidence, not alone:
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good point about the scales Paul but I guess they do show that the dollar is not travelling to well. The graphs do not include the Chinese rmb which has dropped from over 6 to the aus$ to 4.1 today.
Your Chinese ski trip just got lots more expensive.
Andrew, I sympathise but I suggest you expand your world:
Turkey (what powder!), Romania, Bulgaria, China (yes China), Lebanon (small but still a buzz among the Cedars)
If you’re feeling really adventurous, then ski Iran or Armenia…
All these places are remarkably affordable, and unpretentious.
I’m with you Helen!
At least half of the decline against the USD is due to the massive (MASSIVE) capital raising being undertaken by the US Treasury. US Treasury sells bonds to foreigners. Foreigners liquidate whatever domestic or non US assets they have and buy USD to snap up the bonds (safe and secure investment – sort of like what people used to think of gold…). This pushes the US bond yield down and the USD up, despite the US being the world’s biggest debtor and running a 13% budget deficit (and currenct account deficit past 15% and nearing 20%!).
Ultimately the bill will come, and the USD will pay heavily against the other majors (not much hope in there for AUD to get back to 98c though).
Why is the Australian dollar declining?