Nov 7
Paul Cleary
The Australian Financial Review
The Australian dollar has been typecast as a lot of things, but right now it appears to be acting as an early warning
radar for a global downturn and a second instalment of Asian economic instability. Like the Asian crisis three
years ago, the Australian dollar is copping some of the fallout from global disenchantment with the Asian region,
although unlike the crisis, investors are not bailing out, they are simply ignoring it.
Despite the Federal Government's commitment to ameliorate Australia's need for foreign capital by retiring debt,
the $A appears to be suffering because of international scepticism about the pace of Asia's post-crisis clean-up.
In turn, there are doubts about the region's ability to withstand slower global growth and the the impact of higher
oil prices.
The Australian dollar's slide this year is reminiscent of the loss of support during the Asian crisis, although
this time the currency has gradually lost support rather than being chased down by hedge funds.
Read this entire Feature article
in The Australian Financial Review.