What you need to know about the mall department stores
The Department of Commerce’s mall division said the Australian dollar has lost more than 25 per cent against the US dollar since its low point on the Australian financial markets last month.
The Australian dollar hit a low of 76.90 US cents on March 10 after falling more than 60 per cent in the last year.
“It’s the strongest it’s been for almost a year,” chief executive David O’Sullivan said.
“We’re also seeing a real decline in the level of demand in the Australian market.”
This has come on the back of a very strong economic recovery and a strong government.
“But Mr O’Sullivans remarks come after the US Federal Reserve released a statement saying it expects the Australian economy to grow in 2016.”
The outlook for 2016 is positive,” it said.
Mr O’ Sullivan said the dollar’s slide had been compounded by the Federal Reserve’s decision to reduce interest rates and that the dollar had also fallen in the previous two weeks.”
For the last few weeks we’ve seen the dollar fall in real terms and that has had a very big impact on the price of many things,” he said.
He said the US was the biggest loser in the US economy, losing $8.9 billion.”
If the US were to take a similar step as the Fed, that would mean a significant reduction in the number of dollars that are being bought in the domestic market,” he explained.”
So the dollar has been losing ground in the world economy as well.
“The dollar’s decline has hurt Australian exports, particularly in Australia’s food, dairy and furniture industries.
The dollar also weakened in other major emerging markets, including Brazil and India.