Dollar heading for US96c in 2008
/ Tuesday, October 30, 2007
The Australian dollar is likely to hit US96c by the middle of 2008, according to National Australia Bank forecasts released today.
The continuing strength of the Australian economy – with 4% GDP growth in 2007-08 – two interest rate rises by the Reserve Bank of Australia and the bottoming out of the US construction industry are all likely to contribute to a soaring Australian dollar in 2008, according to NAB.
And inflation is set to surge to a “disturbing” 3.5% next year, according to NAB, breaching the RBA’s 2% to 3% target band and lifting the likelihood that we will see a third interest rate rise by the middle of 2008.
On the markets today, both stocks and the dollar have declined slightly after yesterday’s strong performance. At midday, the S&P/ASX 200 is down 0.2% to 6775.8 and the Australian dollar is worth US91.97c, down on yesterday’s 23-year-high close of US92.45c.
SmartCompany is the leading online publication in Australia for free news, information and resources catering to Australia’s entrepreneurs, small and medium business owners and business managers.
Experts
-
Accounting software does not underpay staff — humans do Stacey Price Healthy Business Finances founder
-
Google has updated its search algorithm: Say hello to BERT Lucas Bikowski SEO Shark managing director
-
Five ways to mentally prepare for the brutal capital-raising process Stacey Fisher Minnow Designs co-owner
-
You are not your job: Four work-life balance tips to ease you into Christmas Jackie Rahilly Appoint co-founder
-
Ignoring your ‘obnoxious roommate’: What this founder learnt when she met Arianna Huffington Michelle Gallaher ShareRoot CEO
