One of the scariest forecasts out there for Aussie travellers and importers is the dollar prediction by Deutsche Bank’s Adam Boynton, which has it at 66 US cents!
Now I think this is a huge call and I would be more inclined to see a low around 80 US cents sometime next year, but after 16 years of teaching economics at the University of New South Wales (UNSW) and writing about it in newspapers since 1985, you simply can’t trust the dollar. It defies theory!
Down, down – the dollar goes down
Though CommSec says the dollar will head to 97 US cents this year, I reckon when the Yanks start raising interest rates in 2015 the greenback will rise and the Oz dollar will start to dip. And where it will go, nobody knows. Lower seems logical, given that China’s growth should be a little challenged for a few years. A stronger China would put a floor under our dollar.