Australian Dollar Continues to Strengthen

The Australian dollar has continued to strengthen overnight on the back of continuing speculation that there will soon be an increase in official interest rates in Australia.

At 8.00am on 15 February the A$ was US78.81cents. The expectation of many analysts is that the A$ will hit $80cents by the end of the week.

As reported in previous articles, the rising A$ is continuing bad news for Australian exporters who are being impacted by the strength of the local currency. The expectation of interest rate rises - which will further broaden the gap between Australian and US official interest rates - is something they would rather do without. Most exporters believe the A$ should sit somewhere around US70cents.

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David
editor@agarcarlyon.com