SMH.com.au
23/9/2011
The Australian Dollar has fallen to a 10 month low of 96.92 US cents. This over the last 20 years is an extremely high figure but in recent times any price below $1.02 is a cause for worry.
It has lost 5% so far this week, showing the instability of foreign markets and currencies as they brace for worse economic times ahead, as Greece may default on its loans.
This is bad news for Australians buying overseas as the dollar depreciated below parity against the US dollar meaning that items, especially through online shopping, will be more expensive. This will mean that exports will be more of a viable option for overseas buyers but with the current instability the Australian exports may not be bought as it may go over parity again in the near future, even though experts predict it may hit a 'low' of 95 US cents.
Along the same lines of the Australian dollar it may not increase tourism to Australia as prices may change in the near future.
This current currency fluctuation will affect global business as there is a lot of currency risks riding on the Australian dollar as it flaunts above and below the parity line.
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