Why is australian dollar so strong




















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The Australian Dollar had a fixed exchange rate until when the Australian Labor government floated the currency. As Bretton Woods began to break down, the value of the Australian Dollar was converted to a traditional peg against a floating US Dollar. Free Trading Guide. A strong Australian currency hurts those who rely on the flow of foreign capital to make a living. A high currency can slow the economy down, and dollar-exposed industries such as tourism, manufacturing and education are flagging while the Aussie dollar soars.

If the Australian dollar continues to rise against the other major currencies, the government will need to balance the strength of the Australian dollar against the negative impacts on some Australian industries. It is not intended to constitute financial advice of any kind. The Asian Boom There is general consensus that the principal reason behind the strong Aussie dollar is that Australia currently fits the needs of one of the fastest growing regions in the world — Asia.

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