Andrew Baxter

  Just like many currencies across the world, the Australian dollar has also fallen, and this is impacting many Australians, including investors and businesses. As it stands, the currency is valued at roughly 61 US cents which is a marked decline. This trend makes one wonder, why is it so weak, how will it impact the economy, and what will happen next? The Strength of The US Dollar and Interest Rate Policy A major reason why the Australian dollar is falling in value is because the US dollar is gaining prominence and value. The US economy is currently on the third interest rate cut cycle and is expected to follow with further cuts. It normally happens that an interest rate reduction weaker the dollar if other currencies are strenge and increases the flow of US to. For some reason, this does not happen. The US dollar keeps losign its power and the Australian dollar barely moves. The economic future of Australia plays a crucial role in this phenomenon. It comes from a ...

The Strength of The US Dollar and Interest Rate Policy   A major reason why the Australian dollar is falling in value is because the US dollar is gaining prominence and value. The US economy is currently on the third interest rate cut cycle and is expected to follow with further cuts. It normally happens that an interest rate reduction weaker the dollar if other currencies are strenge and increases the flow of US to. For some reason, this does not happen. The US dollar keeps losign its power and the Australian dollar barely moves. The economic future of Australia plays a crucial role in this phenomenon. It comes from a weaker economy that is capturing market expectations and Australia having weaker currency. It is strongly suspected, that Australian is likely to cut interest rate which will further weakens the dollar. If cuts are made, it may extend the fall into 2025. The Impact of a Weaker Australian Dollar Higher Costs for Imports and Inflation With a weaker Australian dollar, i...