Australian dollar slides prompting growth concerns

By Mozo ·

The value of the Australian dollar has slid closer to its monthly low raising concerns that the country's economy could be about to falter.

High exchange rates for the dollar have been a boon for long-haul Aussie travellers, who have been enjoying some of the best exchange rates in recent memory.

However, the dollar has been slipping for five days in a row and concerning economic indicators – including a sharp drop in building approvals – could have a further negative effect on the country's currency.

Speaking to Bloomberg earlier today about the future of the Aussie dollar, Peter Dragicevich, an economist at the Commonwealth Bank of Australia said: "Downward pressure on the Aussie [will] probably continue today."

The dollar has lost 2.5 per cent of its value in the past month and appears to be performing far worse that its counterparts in other developed nations.

Last week, the Reserve Bank of Australia (RBA) confirmed it would not intervene in the currency markets to drive down the value of the dollar.