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Australian Dollar May Devalue Further

Devaluing Australian dollarThe Australian dollar has been falling rather sharply and is expected to plummet till about 80 US cents. An article on the website “The Advisor” reports that the fall may be a result of internal as well as external factors.

The Reserve Bank of Australia (RBA) has effected various cash rate cuts, the latest being the 7th May cut. Price of commodities produced in Australia has also come down a lot, iron ore being one such example. This has brought about a weakening demand for currency.

There is a consensus among economists that the Aussie dollar may settle somewhere between 70 and 80 US cents by the end of 2013. This shall however augur well for the Australian economy.

It will give boost to exports and will aid local manufacturers. Home construction and renovation industry may also benefit at large from the cash rate cuts.

You can read the original article here.

Do you think that there will be any further cash rate cuts?