Aussie dollar tipped to remain strong

Photo / Thinkstock
Photo / Thinkstock

ANZ chief executive officer Michael Smith expects the Australian dollar to maintain its strength as long as the US Federal Reserve keeps up monthly asset purchases.

"It's unlikely we'll see a huge reduction or a major reduction in the Aussie dollar's strength until there is a tapering in the US," Smith said in an interview on the Australian Broadcasting Corp's Inside Business programme.

While the Australian dollar fell to a three-year low of US88.48c on August 5 that sentiment reversed as the US government shutdown slowed growth, prompting the aussie to touch US97.58c on October 23.

The aussie closed at US94.38c on November 1.

Economists in a Bloomberg survey project that tapering in the US will begin in March, based on the median estimate.

- NZ Herald

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