Dollar reaches record-highs against the euro
Article by Mozo
The Aussie dollar has reached a record-high against the euro, which could spark a sudden online spending spree down under.
Economists have confirmed the dollar reached 83.18 euro cents earlier in the day (July 6th), although this has fallen ever so slightly since, the Australian Associated Press reports.
Foreign exchange markets are not the most exciting subject in the world and to be honest, a lot of people simply don't understand all the jargon. However, it is worth keeping abreast of the basics, as it can save you money.
With the dollar being so strong, imported goods from eurozone countries have never been cheaper. Online shopping has soared in popularity in Australia and this latest news may see even more people using their debit cards to buy bargain products from overseas.
St George chief economist Hans Kunnen told the news provider that Australia generally imports plenty of upmarket products from Europe.
"Clearly, imports from Europe are going to be cheaper and what we tend to buy from Europe is high end fashion and luxury goods," he was quoted as saying.
A lot of Aussies have forgotten what it feels like to purchase luxury items like clothes, perfume and fancy foods. The cost of living down under has spiralled upwards in recent months and the price of everyday staples such as petrol, energy costs and phone bills has soared.
Despite this, new figures released earlier this week by the Australian Bureau of Statistics showed that people are starting to hit the shops once again. Indeed, retail spending went up by 0.5 per cent in seasonally-adjusted terms in May, following a small increase of 0.1 per cent in April.
Clearly a lot more Aussies are feeling increasingly confident about spending their money and lower interest rates have most probably helped with this.
Have a question about debit cards? Ask the money gurus at Mozo Answers.