On Friday, 24th October, the Australian dollar closed down in US trade at a lowly US61.78 cents – down US4.5 cents and 37 percent from the high of US98.49 cents that it attained three months ago.
According to London’s Financial Times, the Aussie dollar has become a “whipping boy” after noting that the currency was “once the darling of the foreign exchange market”.
Economist Chris Gaton is surprised by the dollar’s performance. Gaton was quoted by Fairfax saying “There’s no rational reason for us to be at 62 cents”. Gaton also confirmed that approximately a third of the drop could be due to the recent surge in US dollar, which has risen against major currencies such as the euro and the British pound.
However, the drop is not all doom and gloom. Some Economists say it would provide a much needed boost to exports and a slowing domestic economy. How will this influence Australian Immigration and the property market? For example, if you sold your home at the height of the housing market in March 2007 for £250,000 and transferred the money when the rate was 2.1, you’d have received $525,000 AUD. If you sold your house now, and the value of your home has gone down 15% you would now sell your home for £212,500. However, when you buy Australian dollars at the current rate (say $2.6 to the £) you would now have $552,500. Exactly $27,500 MORE than in 2007 or £10,000 more than you would have received in 2007.
For a free professional assessment of your circumstances, fill out our free assessment form or call 0845 2 606030. Want to know more about emigrating to Australia, Canada and New Zealand? Visit our website: www.immigrationunit.com.
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