Currency rates for the Australian dollar have fallen against the pound and US dollar for the third consecutive day on the back of rising risk aversion in the market. Recent speculation that the Reserve Bank governor will keep interest rates on hold is keeping the Australian dollar under pressure at present, as economists balance controlling inflation against stunting economic recovery.
The Reserve Bank is set to raise interest rates from a record low of 3% but is awaiting confirmation that a sustainable recovery is underway. The delay is good news for retailers, with consumer goods supplier Harvey Norman shares rising to an 18-month high in Sydney this morning. The Australian dollar is likely to be subject to volatility with the release of US retail sales later in the day.
Currency rates for the Australian dollar are currently at USD0.8584 and GBP0.5213.
The rates quoted above are interbank rates. Client rates may vary according to the volume and timing of the trade.