Orica blasts dollar

Orica, the mining services and explosives company, said the government is not doing enough to rein in the Australian dollar and warned that the prolonged strong currency is forcing companies to contemplate the cost of operating in Australia.

The article reports the Australian dollar has been above US$1 for a record nine months.

The article cited the exchange rate at US105.20¢ on Thursday.

Ian Smith is the chief of Orica, and he said that companies are being forced to contemplate the cost of operating in Australia because of the strong Australian dollar.

Treasurer Wayne Swan described the Australian dollar as 'defying gravity,' a comment mentioned in the article a day before the cited exchange rate.

According to Orica's comments in the article, a persistently strong Australian dollar is prompting companies to reassess and contemplate the cost of operating in Australia, which could influence their cost structures and strategic decisions.

Everyday investors should note that corporate leaders like Orica’s chief are publicly flagging currency pressures; this highlights currency risk as a factor to watch when evaluating companies with significant Australian operations.

No. The article relays Orica’s view that the government is not doing enough to rein in the dollar, but it does not report any specific government actions to lower the currency.