The Australian currency’s appreciation hasn’t tracked economic fundamentals, said Guy Debelle, assistant governor for financial markets at the Reserve Bank of Australia.
“In Australia’s case, the issue is exchange-rate appreciation is not in line with fundamentals,” Debelle said today at an International Monetary Fund conference in Washington. The problem for Australia and smaller economies like it is that “you’ve got an exchange rate moving out of line with fundamentals because of financial factors,” he said.
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