Dollar towers over exports

The Australian dollar hit US$0.94 this morning, for the first time since 1984, as the United States recession takes its toll on its economy. Other currencies to do well include the Euro (US$1.51), which passed the US$1.50 mark for the first time since the Euro’s introduction in 1999.

The US Federal Reserve has issued a national warning with regard to the sliding economy with chairman Ben Bernanke admitting the "the economic situation has become distinctly less favourable" since mid-2007. In the last six months, the Reserve has cut interest rates to three percent, to encourage growth.

The rise, although positive for Australian travellers and importers, may play havoc with our export market.