Who benefits from a lower dollar?

Finally, the jawboning seems to be working. Reserve Bank chief Glenn Stevens has said many times over the past year that the Australian dollar is overvalued and should fall. And now it has, down 7% from just under 0.94 USD in early September to just over 0.87 USD yesterday. Since early 2013 it has slumped 18%. But as Cicero might say, cui bono (who benefits) and just as importantly, who suffers? The effect of a lower dollar on the retail industry isn’t clear-cut. Big importers will suffer increased costs, so if you’re in the market for a new flat panel...

Finally, the jawboning seems to be working. Reserve Bank chief Glenn Stevens has said many times over the past year that the Australian dollar is overvalued and should fall.

And now it has, down 7% from just under 0.94 USD in early September to just over 0.87 USD yesterday. Since early 2013 it has slumped 18%. But as Cicero might say, cui bono (who benefits) and just as importantly, who suffers?

{{content.question}}

SMS Code Sent…

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

If you didn't receive SMS code please

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device


Verify your mobile number to unlock a FREE trial

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa

Related Articles