The Australian dollar traded violently and briefly fell to its lowest levels in more than three years as the US Federal Reserve started a wind-back of its unprecedented stimulus program, which has supported the currency.
Australia's dollar gained against most of its major peers amid speculation the Reserve Bank may not cut interest rates further after Governor Glenn Stevens said there are signs that loose policy is supporting spending.
Late on Friday night, the currency dropped to 89.10 US cents, its weakest level since late August after Reserve Bank of Australia governor Glenn Stevens said the Australian dollar should be trading closer to 85 US cents rather than 95 US cents.
As a consequence, interest-rate differentials�and a ballooning current-account deficit peaking at 6.2% of GDP in 2007�helped to stop the Australian dollar from soaring. This was a good thing: if it had increased as much as commodity prices, much of ...
The Australian dollar has gradually weakened today, after a period of volatile trade that saw it briefly fell to its lowest levels in more than three years as the US Federal Reserve started a wind-back of its unprecedented stimulus program.