The Australian dollar has plunged against the US dollar, while the Australian dollar index has plummeted from its all-time high of more than 2,500 US cents to 2,000 US cents.
The Australian currency has fallen by more than 10% since the middle of August, as traders and investors have started to withdraw from the market, and as the dollar has risen.
The Australian dollar was trading around US$1.13 per US cent on Monday afternoon, down from its previous low of US$2.50 per US percent.
Australian dollar to hit new low on Monday after a steep decline, according to data from Bank of America Merrill Lynch and NomuraThe Australian currency is now trading at a record low of 2,066 US cents per US dollar.
The dollar has also lost more than 15% of its value against the greenback this year, which is the worst performance for a major currency since 2008.
According to the latest figures from Bank Of America Merrill, the Australian currency fell by almost a third against the U.S. dollar this year to US$6.50.
“There are a number of factors that have led to this drop in the Australian Dollar, including a number other factors, including rising interest rates in the U, Europe and China,” Bank of Americas Merrill Lynch head of commodities economist Mark Pomerantz told the Sydney Morning Herald.
Merrill’s Mark Ponderantz said it was not clear what the reason for the drop was.
“(The drop) has been a long time coming.
There are several reasons, not just interest rates, but also the impact of the global financial crisis on our domestic economy,” Mr Pomeranz said.
Australia has been hit hard by the global downturn, with the economy contracting by 0.5% in the first quarter of this year.
Bank of America’s Mark Kranz said he expects the Australian economy to shrink by about 0.4% in 2017.
Mr Kranzi said he thinks the global economic situation will continue to deteriorate for at least the next few years.
He said he expected a continued decline in Australia’s growth in the short term, and a drop in exports and business investment.
‘We’re just not buying the Chinese’Mark Kranzan said he was disappointed by the latest data.
“I think the underlying economy of Australia is very fragile.
I don’t think we’re buying the [Chinese] companies and the Chinese [people] are just not paying a lot of attention to it,” he said.”
I just think that the economic fundamentals of Australia are very fragile, we’re just too far removed from the Chinese.”
Australia’s banks were the most vulnerable in the market on Monday.
Banks were also losing money.
As a result of the slide, the average deposit rate for the three largest banks in the country has dropped by nearly 15%, from 7.25% to 5.75%.
The bank rate fell from 6.5 to 5 per cent, while other deposit rates were at 4.75% and 3.5%.
“The risk is that it’s just too much risk for the banks to hold onto their money.
They’ve just got too much capital to do it,” Bank Of Australia head of banking economist Matthew Legg said.
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