Australian Dollar Continues to StrengthenOctober 28, 2016 2:52 pm
The Australian Dollar has gained a lot of strength over the last 3 years. The last few months has seen a steady gain with the currency, however this is causing the Chinese to be put off purchases of raw materials due to the price hike. When this happens with a currency, the situation can be helped by dropping interest rates to weaken the currency. Unfortunately, the rates were cut recently in Australia which did hardly anything to weaken the AUD.
The GBP-USD rate has seen its lowest for 31 years. Great news for the USD as the economy strengthens, even though the general elections are currently happening. 1985 was the last year that saw the GBP as weak against the USD. The same year that the first British mobile phone calls were made! It is expected that if Hillary Clinton gets in, the USD will gain even more strength and see the GBP and EUR fall even lower against it.
Even though the UK GDP came out this week better than expected, the GBP has continued to fall this week. There was a small strengthening in the currency, however this quickly came down and was short lived. Since the Brexit the pound has come under a lot of pressure, seeing a steady fall in the currency since the vote happened earlier on in the year. Will we ever see an increase? Well the answer to that we just don’t know. Sooner or later the pound has to strengthen again, but when that time will be, nobody will quite yet know.aud to usd, australian dollar, gbp to eur
Categorised in: News
This post was written by Kayleigh Driscoll