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Australian businesses want dollar around 75 US cents

Australian businesses want the dollar to hover around 75 US cents to keep them competitive both domestically and in international markets.

Australian dollars in Sydney, Friday, Jan. 15, 2016. (AAP Image/Joel Carrett) NO ARCHIVING

Sally says all her savings have been depleted since going on maternity leave. Photo: AAP Source: AAP

An Australian Industry Group survey of over 240 chief executives finds the lower Australian dollar has combined with greater trade opportunities to have a long-term positive impact on local manufacturing and services businesses.

Over the year to May the dollar averaged 73 US cents - a lot lower than the US$1.04 it averaged between February 2011 and April 2013.

The groups's Chief Executive, Innes Wilcox, says the lower dollar has been a major factor in opening up opportunities for exporters.

However, if it drops too low it makes imports too expensive for those businesses that rely on them to be competitive.

Mr Wilcox says that if the dollar starts heading upwards again, it could derail the transition of growth to non-mining parts of Australia's economy.


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Source: AAP



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