Aussie Dollar continues to fall - £1 buys $1.66
Jun 20th 2013, 2:51 am
#31
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Re: Aussie Dollar continues to fall - £1 buys $1.66
Jun 20th 2013, 9:28 am
#33
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Re: Aussie Dollar continues to fall - £1 buys $1.66
It had been previously estimated that a 9% fall in the Australian dollar had the same impact on the economy as a 1% cut to the RBA rate.
Jun 20th 2013, 11:23 am
#34
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Re: Aussie Dollar continues to fall - £1 buys $1.66
We live overseas and our friends who are strapped for cash are coming over to europe in two months. Poor buggers, not great timing for them! (It could have come earlier for us, we've just bitten the bullet and sent some money home two months ago.)
Jul 5th 2013, 6:56 am
#35
snɐןɔ ʎʇıuɐs
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Re: Aussie Dollar continues to fall - £1 buys $1.66
http://www.theaustralian.com.au/busi...-1226674264607
They are predicting US 75c : AU $1 inside 12 months, a shift from their previous prediction of 85c.
That would equate to £1:$2, if the UK:US rate remained stable, although obviously the US $ could rise, not just the AU $ fall.
It would also put the petrol price up to $1.77 for unleaded.
They are predicting US 75c : AU $1 inside 12 months, a shift from their previous prediction of 85c.
That would equate to £1:$2, if the UK:US rate remained stable, although obviously the US $ could rise, not just the AU $ fall.
It would also put the petrol price up to $1.77 for unleaded.
Jul 5th 2013, 7:35 am
#36
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Re: Aussie Dollar continues to fall - £1 buys $1.66
http://www.theaustralian.com.au/busi...-1226674264607
They are predicting US 75c : AU $1 inside 12 months, a shift from their previous prediction of 85c.
That would equate to £1:$2, if the UK:US rate remained stable, although obviously the US $ could rise, not just the AU $ fall.
It would also put the petrol price up to $1.77 for unleaded.
They are predicting US 75c : AU $1 inside 12 months, a shift from their previous prediction of 85c.
That would equate to £1:$2, if the UK:US rate remained stable, although obviously the US $ could rise, not just the AU $ fall.
It would also put the petrol price up to $1.77 for unleaded.
Jul 5th 2013, 8:41 am
#38
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Posts: 200
Re: Aussie Dollar continues to fall - £1 buys $1.66
The £ got smashed yesterday due to the new saviour at the bank of england. Sounds like this guy will be as useless as Mervin King. In fact, if he ever indicates forward guidance (which sounds possible) then who knows where the £ will end up against the A$. Probably at a level that no-one from the UK could ever move to Oz again!
With the $A taking a beating though it could be a race to the bottom for it and the £.
With the $A taking a beating though it could be a race to the bottom for it and the £.
Jul 5th 2013, 9:11 am
#39
snɐןɔ ʎʇıuɐs
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Re: Aussie Dollar continues to fall - £1 buys $1.66
In other words, this is to plan.
However, there's a limit to the degree to which he can devalue the currency, and the issues pushing down the AU$ are structural. So it's likely that the fall in the $ will win out (particularly if Rudds honeymoon period ends).
Personally I'd still looking for reality to hit the US$...
Jul 5th 2013, 9:16 am
#40
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Re: Aussie Dollar continues to fall - £1 buys $1.66
I still think Carney announcing forward guidance (if that happened) would really devalue the £ in a hurry though. The Australian issue may be structural, but in that case I think the £ drop would give the A$ drop a good run for its money.
Jul 6th 2013, 8:00 am
#42
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Re: Aussie Dollar continues to fall - £1 buys $1.66
Nah, as I said earlier in the thread, the new guy's stated plan is to try to push down the value of the pound, so that the value of the government debt falls with it and inflation eats away at it.
In other words, this is to plan.
However, there's a limit to the degree to which he can devalue the currency, and the issues pushing down the AU$ are structural. So it's likely that the fall in the $ will win out (particularly if Rudds honeymoon period ends).
Personally I'd still looking for reality to hit the US$...
In other words, this is to plan.
However, there's a limit to the degree to which he can devalue the currency, and the issues pushing down the AU$ are structural. So it's likely that the fall in the $ will win out (particularly if Rudds honeymoon period ends).
Personally I'd still looking for reality to hit the US$...
Jul 6th 2013, 9:37 am
#43
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Re: Aussie Dollar continues to fall - £1 buys $1.66
To put things into a historical framework;
As an old fart I actually remember when AUS and UK were both on the pound.
When Australia went to "dismal currency" along with South Africa and New Zealand it was decided that the pound was a very cumbersome unit as it was far too large for anything practical on a day to day basis as most stuff cost two bob or less. I expect a pound would buy you a Mars Bar nowadays if you are lucky.
So AUS NZ and S.A. decided to cut the pound in half and go for the ten bob unit as their currency. It was going to be called "the Royal" in AUS but that got squashed quickly. S.A. went with The Rand and we and the kiwis got the boooring dollar.
Thus. Nowadays if the Pound and Dollar were at what you might call "parity" then it would be a pound to two bux.
When I last went to the UK in 2000 the Aus dollar was a third of a pound that was painful. Now it's the other way. I would expect that in a year or two the ratio will maybe have settled down perhaps to around 2:1 in which case we are at "parity".
As an old fart I actually remember when AUS and UK were both on the pound.
When Australia went to "dismal currency" along with South Africa and New Zealand it was decided that the pound was a very cumbersome unit as it was far too large for anything practical on a day to day basis as most stuff cost two bob or less. I expect a pound would buy you a Mars Bar nowadays if you are lucky.
So AUS NZ and S.A. decided to cut the pound in half and go for the ten bob unit as their currency. It was going to be called "the Royal" in AUS but that got squashed quickly. S.A. went with The Rand and we and the kiwis got the boooring dollar.
Thus. Nowadays if the Pound and Dollar were at what you might call "parity" then it would be a pound to two bux.
When I last went to the UK in 2000 the Aus dollar was a third of a pound that was painful. Now it's the other way. I would expect that in a year or two the ratio will maybe have settled down perhaps to around 2:1 in which case we are at "parity".
Jul 6th 2013, 11:35 am
#44
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Re: Aussie Dollar continues to fall - £1 buys $1.66
I am keeping my fingers crossed that the Aus dollar falls against the pound for about another month- dad's house should finally complete next week, so I'm hoping to transfer over about $50k when it has been divvied up and all the bills settled.
Jul 6th 2013, 3:54 pm
#45
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Re: Aussie Dollar continues to fall - £1 buys $1.66
To put things into a historical framework;
As an old fart I actually remember when AUS and UK were both on the pound.
When Australia went to "dismal currency" along with South Africa and New Zealand it was decided that the pound was a very cumbersome unit as it was far too large for anything practical on a day to day basis as most stuff cost two bob or less. I expect a pound would buy you a Mars Bar nowadays if you are lucky.
So AUS NZ and S.A. decided to cut the pound in half and go for the ten bob unit as their currency. It was going to be called "the Royal" in AUS but that got squashed quickly. S.A. went with The Rand and we and the kiwis got the boooring dollar.
Thus. Nowadays if the Pound and Dollar were at what you might call "parity" then it would be a pound to two bux.
When I last went to the UK in 2000 the Aus dollar was a third of a pound that was painful. Now it's the other way. I would expect that in a year or two the ratio will maybe have settled down perhaps to around 2:1 in which case we are at "parity".
As an old fart I actually remember when AUS and UK were both on the pound.
When Australia went to "dismal currency" along with South Africa and New Zealand it was decided that the pound was a very cumbersome unit as it was far too large for anything practical on a day to day basis as most stuff cost two bob or less. I expect a pound would buy you a Mars Bar nowadays if you are lucky.
So AUS NZ and S.A. decided to cut the pound in half and go for the ten bob unit as their currency. It was going to be called "the Royal" in AUS but that got squashed quickly. S.A. went with The Rand and we and the kiwis got the boooring dollar.
Thus. Nowadays if the Pound and Dollar were at what you might call "parity" then it would be a pound to two bux.
When I last went to the UK in 2000 the Aus dollar was a third of a pound that was painful. Now it's the other way. I would expect that in a year or two the ratio will maybe have settled down perhaps to around 2:1 in which case we are at "parity".
If you want to be pedantic it should have been $2.40 to £1 because of course 12 pence in a shilling times 20 shillings equals 240 pence to the pound. The government at the time wanted the Aussie dollar to be more valuable than the greenback so didn't opt for this, choosing 200 cents to the pound or $2 equals £1.
In my view it's meaningless to speak of 'parity' for exchange rates as though it was like par in golf and a standard for evermore. Exchange rates as we know are all over the place historically. I don't mind regarding 100 Aussie cents being equal to 100 US cents being called parity but it doesn't mean that's normal or fair or whatever.
I can remember changing dollars for £'s in 1980 and getting $1.33 = £1; I can remember changing £'s into dollars in 2001 at the rate of $3.02 = £1 and I can remember the $1.45 = £1 of 3 months ago. In this forum I've seen $2.50 and $2.00 regarded as parity or the 'true' state of affairs.
At the moment there are downward pressures on both the £ and the AUD for different reasons. How the rate will go in the future is open to much conjecture and influences that will pan out in time.