The Australian Dollar…

Fell on its head yesterday and continues to slide today amidst a selling frenzy of high-yield currencies.

It is now (as of 10:58am AEST):

0.72 against the USD, 2.52 against the MYR and 73.36 against the JPY.

It’s good news for paying my fees and investing the low-yield MYR here in Australia but it will bite into my purchasing power for my hobby merchandise from Japan. You take the good and the bad, I guess.

It’s not all doom and gloom…with a weaker AUD, local manufacturers will be jumping for joy. Perhaps it’ll reverse or at least halt the continuous retrenchments and lay-offs that have affected the local (Victorian) manufacturing sector. That being said however, with the credit market being tight, securing capital for reinvestment is another issue.

Interest rates are set to come down though….estimated by 0.5%. Home-owners rejoice? That’s if you tighten your belts and get set for some austere living. Forget that overseas trip before/after Christmas. Pump that money back into the local economy.

Cheerio.

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~ by shybeg122 on October 7, 2008.

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