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Australian dollar still too high, but getting closer to RBA’s target

The Australian dollar got a small boost after Reserve Bank of Australia deputy governor Phillip Lowe said the currency is getting low enough to help support economic growth, giving an indication of the levels the central bank wants the Aussie to trade at.

Asked for his target for the Australian dollar, Mr Lowe at a conference on Thursday said he suspected the currency – which has slid 16 per cent against the US dollar in the past six months – was still too high but that it was also “much, much closer” to where it needed to be to support growth.

“Global developments have left us with a higher exchange rate and lower interest rates than would otherwise have been the case,” Mr Lowe said. “We may not like this configuration, but developments abroad give us little choice.”

The Australian Financial Review

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