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Why is the Australian dollar dropping when the US economy is in crisis?
By Rose | August 15, 2008
Squirt asked:
I’m so confused as to why (even before interest rate cuts) the AUD is dropping against the US dollar when its the US economy thats in turmoil. Why is our currency affected so significantly by this? Any help would be greatly appreciated!!
Lewis
I’m so confused as to why (even before interest rate cuts) the AUD is dropping against the US dollar when its the US economy thats in turmoil. Why is our currency affected so significantly by this? Any help would be greatly appreciated!!
Lewis
Topics: US Economy | 3 Comments »
August 16th, 2008 at 11:24 pm
Because the USA is the world’s superpower, whether we like it or not. That’s why this next election is so important, it will effect us all globally. I’m Canadian and we’re waiting for our dollar to drop too, our stock market is already starting to have a few issues.
August 17th, 2008 at 1:27 am
Because these days the whole world’s economies are linked and since the US economy is still the biggest it affects everybody. Sorry mate.
August 19th, 2008 at 7:30 am
With the US being a superpower it spends trillions of dollars per year in trade. With the US economy dropping it has had to cut back on some trade routes with other countries. That in turn will cause that country to loose some of its national income. And in your case causing that AUD to drop.