RBA Growth Girl Warns Aussie Too High as Stevens Holds Rates

Incoming Australian central bank board member Heather Ridout aims to bring more attention to the nation’s overvalued exchange rate as she joins the policy debate amid deliberations on lowering interest rates.

“There’s too much froth in the Australian currency,” which economic fundamentals indicate ought to be worth 90 to 95 U.S. cents, Ridout, outgoing head of the Australian Industry Group, said in an interview yesterday. She said “speculative” buying stoked by rate differentials had spurred the local dollar, which traded at $1.0834 at 8:08 a.m. in New York.