Some interesting and diverse comments. I have never known exactly why the various exchange rates vary constantly and vary wildly at times. I probably should jump on Google and investigate
. It does seem unusual that the consensus is that Australia in probably going to weather the tough economic times better than most western economies and yet we seem to get hammered with the exchange rate.
Taking a mild interest over a long period of time I think there are a number of factors that vary our exchange rate. I have heard that being a relatively small volume currency the Oz $ is subject to manipulation at times
. I don't think that is the cause at the mo. The last explanation of the current situation I heard was that the US economy is sucking in credit which somehow makes the oz $ against the $US go down and the $US against the Euro go down
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I think the variation in exchange rates is a case of swings and around abouts, there are advantages and disadvantages. Some industries welcome the change some go backwards. My sister in law is getting an inheritance from Ireland. She'll effectively get about 50% more than she would have 12 months ago
. The prob with variations in any prices is the disruptive effect of adjusting (exchange rate is an international price of our currency).
I'm still buying out of the US, buying less and being more selective but still buying. Without any real info I'm supposing that the Oz $ will recover further in the near future. I probably should jump on to Google now and become better informed
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