Yesterday it was going great guns to 1.05, now it is barely above 1.04 on the reverse. Does anyone know what is causing these fluctuations? It must wreak havoc for some businesses.
I'm not sure if the RBA selling dollars would cause such fluctuations though. Quick rise, quick fall. 'Interesting times' turns out to be quite a nasty curse.
You probably don't watch the FX market do you? Should've seen 'fluctuations' of the AUDUSD back in 2008: 11th July - AUDUSD Closing @ 0.9460 11th Nov - AUDUSD Closing @ 0.6175 Source: Google Finance To be fair the RBA cut AUD Cash Rate from 7.25% to 5.25% between those the time of those two rates. How do businesses that import and export deal with fluctuations? Larger exporters and importers can buy futures FX Contracts, to 'lock-in' an exchange rate over a fixed period.
BOJ..is printing money like there is no tomorrow.. Japan is having the last throw of the dice to bring its economy out of the doldrums by causing a spike in inflation. Interesting days ahead for currencies? Regards Errol 43
