Australian dollar hits five-year low, fetching 80.53 US cents
The Australian dollar has plummeted to its lowest level in five-and-a-half years.
At noon today, the local currency was trading at 80.95 US cents, down from 81.37 cents on Friday. The Australian dollar briefly dipped as low as 80.53 US cents this morning, its lowest level since July 2009.
Easy Forex currency dealer Ricky Liu said weak commodity prices and US dollar strength were continuing to weigh on the Australian dollar in 2015.
“US dollar strength has continued in anticipation of an interest rate hike by the US Federal Reserve, so we’re getting a weaker Australian dollar,” Mr Liu said.
“Commodity prices have continued to fall off and China is slowing down which also affects the Australian economy.
“Australia is slowly going toward a recession.”
Mr Liu said the currency would likely continue on a downward spiral, after Reserve Bank governor Glenn Stevens last year said a fair value for the Australian dollar was 75 US cents.
Meanwhile, Australian bond futures prices were higher.
The March 2015 10-year bond futures contract was trading at 97.300 (implying a yield of 2.700 per cent), up from 97.175 (2.825 per cent) on Friday.
The March 2015 three-year bond futures contract was at 97.890 (2.110 per cent), up from 97.850 (2.150 per cent).
Source: news.com.au – Australian dollar hits five-year low, fetching 80.53 US cents
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