Powered by MOMENTUM MEDIA
subscribe to our newsletter sign up

Website Notifications

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

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

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.

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.

Advertisement
Advertisement

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

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
subscribe to our newsletter sign up
FROM THE WEB
Recommended by Spike Native Network
Anonymous - The confiscation of Imputation Credit has been stopped, thanks to the Liberal minded Aussie voters that stand up to correct the inequality so that the.......
Cheryl k - Seems a no brainer
If you want small /medium size business to grow and employ more people vote liberal
If you want to be a self funded retiree vote.......
Rob Colquhoun - Why get married then?....esp the18-24 group, understand for those over 70.....
Anonymous - If Labor wins on Saturday, not many new developments will commence until 1 January 2020, to take advantage of Labor's negative gearing only for new.......