Australian dollar touches six-year low as RBA urges weaker currency
July 7, 2015 9:10 am
The Australian dollar on Tuesday declines to its weakest level in six years as Reserve Bank of Australia Governor Glenn Stevens retained interest rates at 2%, saying the country still needs a weaker currency.
In a statement outlining their decision, the RBA seemed more optimistic regarding the economy on steady unemployment rate and higher borrowing rates.
The Aussie finished at 67.86 euro cents from Monday’s 67.97 euro cents, and 74.37 US cents from 74.78 US cents earlier.
The currency will continue its slide due to lower “non-mining activity, deteriorating risk conditions and the overvaluation as commodity prices decline,” said Mitul Kotecha, Head of Asia Pacific Foreign-Exchange Strategy at Barclays Plc.
The material has been provided by InstaForex Company – www.instaforex.com
The Australian dollar on Tuesday declines to its weakest level in six years as Reserve Bank of Australia Governor Glenn Stevens retained interest rates at 2%, saying the country still needs a weaker currency.
In a statement outlining their decision, the RBA seemed more optimistic regarding the economy on steady unemployment rate and higher borrowing rates.
The Aussie finished at 67.86 euro cents from Monday’s 67.97 euro cents, and 74.37 US cents from 74.78 US cents earlier.
The currency will continue its slide due to lower “non-mining activity, deteriorating risk conditions and the overvaluation as commodity prices decline,” said Mitul Kotecha, Head of Asia Pacific Foreign-Exchange Strategy at Barclays Plc.
The material has been provided by InstaForex Company – www.instaforex.com
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