Australia's high dollar is 'here to stay'

Mozo

Thursday 16 August 2012

Australian travelers heading overseas are benefiting from some of the best exchange rates around at the moment as the strong dollar makes long-haul travel much more affordable.

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While there are negatives to a stubbornly high dollar, for jetsetters it means their hard-earned cash will stretch that little bit further.

According to the Commonwealth Bank of Australia (CBA), the strong dollar is here to stay too and the firm's chief executive officer Ian Narev believes it is not just travelers that need to adapt – businesses do too.

He even warned that the Reserve Bank of Australia (RBA) would be over-stepping the mark if it intervened in the money markets to drive down the value of Australia's currency.

A recent report from Reuters, showed that the euro has weakened against the dollar by ten per cent since mid-May, a trend driven by the ongoing European debt crisis.

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