Australian Dollar Hits Lowest Low in Eighteen Years

This week the Australian dollar hit its lowest low in eighteen years. Currently, the Australian dollar is sitting at a comparative rate of 0.61 US cents, a slight rise from earlier in the week when it was sitting at 55 US cents. This comes partially after the Reserve Bank of Australia actioned an (expected) emergency interest rate cut (0.25per cent, to be exact). The current value of the Australian dollar is its lowest since 2002, and presents a powerful testament to the fact that this pandemic is impacting us in just about every possible way. 

The falling value of the Australian dollar this week has proven to be a vast difference in its strong value even a month ago, when the pandemic had impacted the US more than Australia. Of course, the current position of the Australian dollar was not at all unexpected, and it is fully expected that there are going to be more rises and falls in the coming months. The Australian economy (again, along with the rest of the world) is struggling currently, there is no getting around this fact. Going forward, we can only watch with baited breath and hope for better days to come. 

Eventually, inevitably, it will begin to balance again, however it is near impossible to tell exactly when that will be. The only certainty right now is this is far from being over. The Australian economy (along with the rest of the world, quite frankly) is currently going through an immensely challenging time (to say the very least). While there is no “good news” here, as it were, the fact of the matter is that we are going to see many more rises and falls not just in the Australian dollar itself but in other currencies around the globe, while this pandemic continues to play out and in the aftermath. 

As the Australian dollar currently sits in a very vulnerable position in the forex market, the country also obviously continues to experience new rules and regulations every other day. There is no quick fix here, and what it will essentially come down to is the fact that we are going to have to “grow through what we go through). It is a process that is going to take time and it is a process that cannot and should not be rushed in any capacity.