The Australian dollar fell to a five-and-a-half-year low (AEDT) this morning.
The ABC reports that the dollar dipped as low as $US 80.52 cents before rising slightly to 80.7 cents at 10:50 am (AEDT).
Soft commodity prices and the resurgent US dollar have been given as reasons for the Aussie’s fall.
“The key theme in the new year has been US dollar strength and that has been represented in declines in most other currencies,” Fairfax reports Bank of New Zealand strategist Kymberly Martin as saying.
In a statement accompanying the Australian Industry Group’s PMI result release for December, chief executive Innes Willox said the dollar’s fall has been welcomed by the industry, but remains at a level that allows for strong competition from imports.
The ABC notes that analysts at the Commonwealth Bank of Australia, the country’s largest bank, expect the dollar to slip to $US 78 cents by the end of March and then dip as far as 73 cents by the end of June.