Australia Dollar at 80 U.S. Cents Is Fair Value, Daiwa SB Says
Yoshisada Ishide, who manages the $9.14 billion Daiwa SB Short-Term Australian Dollar Bond Open Fund (22311034) in Tokyo, comments on Australia’s dollar and central bank.
Traders reduced bets on how much the Reserve Bank will cut interest rates after the Australian dollar fell below $1 last week, making the nation’s goods cheaper to overseas buyers.
A currency rate of 70 U.S. cents to 80 U.S. cents is “fair value,” Ishide said. The RBA will keep cutting rates as central banks around the world try to reduce borrowing costs, he said.
“The RBA has to follow this momentum. The priority is currency policy. A declining Aussie dollar is a top priority. Currency players are negative on the Aussie dollar because they recognize that there will be further rate cuts. I expect Governor Stevens still feels that the Australian dollar is still very high.”
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