Dollar at 0.67 USD
By SmallStocks on Oct 10, 2008 in Foreign Exchange
The dollar is still trading very weekly compared to less than four months ago when it was almost at USD parity. The reasoning ? Mainly driven by the falling Japanese market and the trading of heding positions using interest rates. The overnight unemployment figures increasing from 4.1% to 4.3% did pretty much nothing to the currency rates - primarly overshadowed by the Wall St drop. The dollar has taken a massive hit because of the fairly clear indication that the RBA is going to continue to push interest rates lower and lower.
Japan, and the rest of the world it seems, know this and therefore they are selling the AUD. Dream for Exporters and Tourists. Sucks for Importers and Holiday Makers.
