The rate of the Australian dollar declined on Friday amid strengthening worries concerning the decrease of the key interest rate.
Thus the currency of Australia fell to 1.0423 US dollars from 1.0497 US dollars registered on Thursday, when the report of the Australian Treasury exasperated anticipations regarding the national currency and its impact on the country’s economy.
After the increase, seen during the previous five weeks, the Aussie lost 1.5% over one week, which was the most significant weekly ebb since mid May.
The comments of the Treasury of Australia warmed up the deepening worries about the overestimated exchange rate of the Aussie, which may as well exert influence on the monetary policy, conducted in the country, considers Adam Cole, a specialist of the RBC Capital Markets.
A lot of analysts expect the reduction of the rates in quarter four from the current value of 3.5%. In addition, the RBC Capital Markets forecasts, that the Australian dollar will weaken to 1.01 US dollars by the end of this year and will fall to 1 greenback by the end of 2013.
