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Parity! Aussie dollar hits 28-year high

16 Oct 2010

From Craig James - Commsec

Economic trends

The Aussie dollar hit parity with the US dollar – one Australian dollar equalling one US dollar – overnight. The Aussie hit US$1.0002 very briefly at 11.17pm Sydney time before quickly retreating. The Aussie dollar is ending the US session near US98.80c. The last time that the Aussie was at parity with the greenback was 28 years ago, on July 28 1982.
The high level of the Australian dollar is good news for consumers and importers but bad news for exporters, rural producers and the tourism sector. Overall, the high level of the currency actually slows
down momentum in the economy and may stay the Reserve Bank from lifting interest rates in coming months.
Our currency strategists believe the Aussie will lift to US$1.02 in early 2011.

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