Business Services Industry
$A falls as wary business drags on rate.
Australasian Business Intelligence, September, 2005
Byline: Victoria Batchelor
Sep 13, 2005 (The Australian Financial Review - ABIX via COMTEX) -- The Australian dollar could drop as low as $US0.72 in early 2006, says one analyst. The pessimism of Richard Grace, Commonwealth Bank of Australia senior currency strategist, reflects the attitude of many of his peers. The US Federal Reserve continues to raise US interest rates, which will probably hit 3.75
in late September 2005, while the Reserve Bank of Australia is expected to maintain the domestic rate of 5.5 well into 2006. The narrowing of rates is causing the Australian
dollar to decline in value as investors and businesses lose confidence.
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