Australian dollar`s chart against US dollar since 1983 float
The fact that the australian dollar has fallen nearly 6% this year and has fallen to a 11-year low against the dollar in the local currency today is bad news for planned travelers abroad, but may be good news for domestic economics.
At 1.30 p.m., the Australian dollar fell below 66 cents on the local exchange to a 11-year low of 65.94 cents, and fell nearly 6% from 70.16 cents earlier this year.
The main reason for the Australian dollar`s fall today was official data released yesterday showing the country`s unemployment rate rose from 5.1 per cent to 5.3 per cent, but the Australian dollar has been under pressure in recent months.
Shane Oliver, chief economist at AMP Capital, said:" The Australian dollar has been sliding as a result of the new crown virus, and this is logical because Australia is seen as one of the developed economics most vulnerable to China`s economics. "
At the same time, the US is seen as a safe haven by investors, and the dollar has been blessed.
Some local economists have argued that the australian dollar is likely to fall further, especially since the new corona looks like it will take a long time to get under control, and that the pause in many chinese factories could be prolonged.
`On a technical level, the Australian dollar is now very fragile and the dollar is strong,` Rodrigo Catril, senior foreign-exchange analyst at National Bank of China, said in a briefing to clients.
The Australian dollar fell to 62.50 cents in February 2009, the lowest since 2003.
The Australian dollar has been flat at 76.70 cents since Bob Hawke`s government floated the Australian dollar in 1983.
Mr. oliver says the australian dollar`s weakness has made it more expensive to go on holiday overseas and to import goods such as cars, clothes, electronics and gasoline.
But it also makes australia`s export-oriented economics, such as agricultural and mineral products, more competitive.
The Australian dollar opened the day at 66.47 cents for the local exchange and closed down at 66.05 cents, but recovered slightly from its lowest level today.
Meanwhile, Australian stocks closed low today after hitting two consecutive highs on Wednesday and Thursday. The Australian Stock Exchange/S & amp; P/ASX200 index slipped 23.5 per cent, or 0.33 per cent, to a contraction of 24.8 per cent at 7,230.4 per cent.
