Powered by momentummedia
nestegg logo
Powered by momentummedia
nestegg logo
nestegg logo

 

 

Invest

What an expensive Aussie dollar means for investors

By Reporter
  • September 11 2017
  • Share

Invest

What an expensive Aussie dollar means for investors

By Reporter
September 11 2017

The price of the Australian dollar reached a two-year high last week, which one wealth management and accounting firm says poses both challenges and opportunities to Aussie investors.

Prime Financial Group, wealth management, retirement planning, retirement savings, Australian dollar, foreign exchange, interest rates, reserve bank of Australia

What an expensive Aussie dollar means for investors

author image
By Reporter
  • September 11 2017
  • Share

The price of the Australian dollar reached a two-year high last week, which one wealth management and accounting firm says poses both challenges and opportunities to Aussie investors.

Prime Financial Group, wealth management, retirement planning, retirement savings, Australian dollar, foreign exchange, interest rates, reserve bank of Australia

The Australian dollar reached 80.99 cents against the US dollar last week, which Prime Financial Group noted has many implications.

Firstly, Prime said in a statement, the high price of the dollar will likely put pressure on the Reserve Bank of Australia to keep rates low despite the optimism from many commentators that rates could rise sooner than was previously expected.

Prime also posited that the strength of the Australian dollar is “doing more harm than good” to the Australian economy’s growth prospects.

“The rising Australian dollar puts pressure on our domestic productivity, and acts as a drag on local growth,” the statement said.

Advertisement
Advertisement

However, this growth is making it more attractive to invest in international share markets, Prime said, and is creating investment opportunities by contributing to underperformance on the part of “several high-quality stocks” that generate much of their revenue from foreign markets.

 

What an expensive Aussie dollar means for investors
Prime Financial Group, wealth management, retirement planning, retirement savings, Australian dollar, foreign exchange, interest rates, reserve bank of Australia
nestegg logo

Forward this article to a friend. Follow us on Linkedin. Join us on Facebook. Find us on Twitter for the latest updates
Rate the article

more on this topic

more on this topic

From the web

Recommended by Spike Native Network

More articles

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.