Aussie exchange rates best for decades

Aussie exchange rates best for decades-This is the link for the articleAussie exchange rates best for decades.http://news.theage.com.au/breaking-news-business/aussie-exchange-rates-best-for-decades-20100305-pob7.htmlThis topic is under Macroeconomics topicsYou are to select an article for economic analysis—with an option of possibly choosing from the topicsas specified by your Tutor: [Your tutor will inform you about the random selection method.] The articlerelates to one or more of the topics (chapters) covered in the lecture program, namely themicroeconomics and macroeconomics topics.You are to apply your economic theory to explain and analyses the article. Refer to the ‘An inside look’section at the end of each chapter in the textbook for examples. The assignment should beapproximately 1800- 2000 words in length and include well-labeled diagrams. A copy of the articleshowing date and source is to be included with the analysis.present your assignment as a report – include an executive summary page,introduction, economic concepts/theories to be applied, analysis, conclusion and references.1311012013 Print Article: Aussie erchange rates best for decadesXfoeaqe.cGm”aalT=HE”ffiA*EE Print this article I lE Close this windowAussie exchange rates best for decadesKim ChristianPublished:March 5,2010 – 3:54PMEurope just got cheaper. If low airfares haven’t tempted you to Advertisementbook a ticket to Europe for the northern summer, then therecord purchasing power of the Australian dollar just might.The Australian dollar this week was buying 66 euro cents andmore than 60 British pence, toppling records that have beenheld for decades.And analysts predict the strength of the Australian dollar tocontinue until at least mid-year.Royal Bank of Scotland foreign exchange strategist GregGibbs said the Australian dollar had recentlv reached some ofits strongest levels against the euro.“Clearly it’s one of the best times to be travelling,” Mr Gibbssaid. “And it’s likely to persist.”He said Australia’s economic and trade links with a strengthening Asia had played a large part in the continuedappreciation of the local currency.The strength of the Australian dollar has also been assisted by the nation’s comparatively high interest rates, whilerecent concerns surrounding sovereign risk in Greece had undermined the euro.However, Mr Gibbs warned that Australia’s large need to fund itseH from international capital markets meant thelocal currency could fall rapidly if funding sources dried up.Mr Gibbs predicts the currency will continue strengthening against the euro over the course of the year.During London trade on Tuesday, the Australian dollar reached 66.81 euro cents, a record high since the start ofthe eurozone currency in January 1999.The local currency closed at 60.20 British pence on Wednesday, breaking a 25-year high.In the travel industry, Australia’s steady economic recovery contrasts greatly with a slow recovery in Europe.Flight Centre spokesman Hadyn Long said Australian travellers were experiencing good value, but it was difficult toassess how the strong Australian dollar had affected the leisure travel market.“There are a number of things that have led to the IIK and EyroRe being fairly popular this year,” Mr Long said.“The (Australian) dollar’s one of them, but greater economic certainty and cheap fares have probably been more‘ important.”Airfares had dropped in line with weaker demand in the wake of the financial crisis, he said.Tourists who want to lock in a high exchange rate before setting off overseas can now purchase travel cards andload them up with selected currencies.neus.theag e.com.au/action/printArticle?id= 1 1 97907 j 121311012013 print Article: Aussie erchange rates best for decadesFinancial analyst Peter Arnold, of the product comparison company Canstar Cannex, said the Commonwealth Bankwas the latest major bank to offer a prepaid travel card service linked to major credit cards, after ATr{Z and NationalAustralia Bank.“Generally, the fees on these cards are reasonably low for the transaction and currency conversion.“Elut the biggest thing which sets it apart from a credit card, or using your own money to use a debit card, is thatyou’re locking in an exchange rate,” he said.“You’le buying your money before you leave and you know exactly how much of that currency you have to spend,so you won’t be subject to exchange rate fluctuations.”This story was found at: ht$://newstheage.com-au/breaking-news-businesdaussie-x.change-rates-best-for-decades-20100305-pobT.htmlner,w “theag e.com.au/action/pri ntArticle?id= 1 1 97907