Australian dollar rises to 29-year high against US dollar

| March 30, 2011 | 0 Comments

The Australian dollar has hit a 29-year high against the US dollar to $1.0318 - a level not seen since it was floated in 1983.

Analysts have attributed the rise to increasing demand for the country’s commodities.

Australia has benefited from an increase in commodity prices, while exports have received a boost due to demand from China for its iron ore and other raw materials.

Furthermore, high interest rates and low inflation has meant investors have injected money into the country.

It is one of the few developed economies not to have fallen into recession like its counterparts throughout the world

The economy expanded by 2.7% in 2010 and, while strong growth is expected again this year, first quarter growth could be hit by recent flood and cyclone disasters, which has led to a fall in coal and agricultural exports.

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