Why does the australian dollar keep going up, does the constant increase in interest rates, the drought and?

Question

the awb scandal have no negative impact on the Aussie dollar ? Does this mean that as weak economic dollar flows out of the U.S the Aus dollar will keep rising and rising ? wasnt it worth only 50 US cents less than 5 years ago and now its at 78 ?

Answer 1

It has more to do with the weakness of the US$ generally than with anything Australia-specific. Look at the A$/euro exchange rate to see what I mean.

Answer 2

Not an overall answer, but a couple things:

Higher interest rates in Australia would raise its value, mainly because it restricts inflation. If the US dollar loses value faster than the AU dollar, you will be able to buy more US ones for each AU one.

Strong currency makes a countries exports less attractive, and make foriegn goods cheaper. If a country wants to stimulate its export sector, it weakens its currency. China and the US had been having a race to the bottom, but China quit.