The Australian dollar has slipped below parity with the US dollar overnight, trading as low as US 99.961c overnight, remaining below parity in morning trade.
Last week the Aussie dollar moved abode parity against the Greenback after the the Reserve Bank of Australia increased official interest rates 25 basis points and the US Federal Reserve would spend $600 billion to buy US government bonds in order to stimulate the economy and boost employment and prevent deflation.
Since then, only once before this morning has the Aussie dollar dipped below parity, when on Wednesday it traded briefly at US99.57c before returning to its position as more valuable than the US dollar.
Reasons for this mornings move include concerns about the European markets and the destabilising effect faltering European economies could have worldwide. The Australian dollar still remains in a strong position and is likely to continue its record run into the new year according to Dale Gillham who expects the Aussie dollar to be worth between $1.10 and $1.20 within the next 12 months.
Exporters affected by the high value of the Aussie dollar are encouraged to read Michael Derin’s article on ‘How exporters can soften the blow of a high Aussie dollar‘.
The Aussie dollar is currently trading at US99.77c at 9am AEDST.
