April 1, 2011
The Australian dollar (A$) reached record levels overnight, hitting 103.73 in U.S. cents. This represents the highest value the A$ has reached since it was floated in 1983. The strength of the dollar is underpinned by the relatively higher interest rates on offer in comparison to other developed countries, as well as an improvement in global market sentiment and confidence.
The value of the dollar has consistently hovered around parity since the start of the year, with some forecasts suggesting the A$ could get as high as 110USą by the end of 2011. Although demand for Australian product both domestically and internationally remains high, the surging A$ continues to put pressure on exporters.
Interestingly, the A$ has reached record levels in the same week as national cattle and sheep prices - going completely against the traditional impact of a rising A$.
Reprinted from Meat and Livestock Australia