Quote:
Originally Posted by tabasco
Won't it shoot back up once they finally bailout the banks?
Nice to see the current rate though...
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The issues in the US are only part of why the Aussie dollar is slipping against the US. The Australian dollar is a commodity currency. Commodities go down - the Aussie dollar goes down. Gold's dropped something like 200 bucks per ounce and Oil's gone from nearly $150/barrel to about $90 last time I bothered to check.
Add to that the lowering of interest rates recently coupled with a rate drop due any day, which will makes Australia a less tempting market to invest in, which in turn will weaken the Australian currency. Which will probably help Australia because our exports are cheaper to buy and that's where Australia really makes its bank.
That's my understanding, at least.