The
Australian dollar dipped to a six-month low at 7 am today as the US currency
strengthened.
AAP reports that the Aussie dollar fell from Friday’s US89.55 c to US89.32 c, weighed down
by falling iron ore prices and the resurgent US dollar.
The US dollar reached a four-year high on Friday night.
Last
week two UBS economists predicted that the Australian currency could fall to somewhere within a range of 73 and 85 cents by mid-2015.
Their
modelling was based on the Reserve Bank of Australia’s fair value model, taking
into account commodity prices.
UBS’s
Scott Haslem and George Tharenou predicted the US dollar would dominate
currency trading next year.
“Most leading indicators suggest the US
economy is strengthening relative to other countries, while diverging rates
policies ought to be US-dollar supportive,” the ABC quotes them as
saying.
Image: ABC