Aussie dollar and other Australian currencies have hit record lows against the US dollar.
The Australian dollar, which hit a six-month low of $US3.1864 on Monday, has since traded as high as $US0.2217.
The Australian dollar is down more than 30 per cent against the greenback since the start of the year, but has since rebounded slightly against the dollar, moving up 0.8 per cent on Tuesday.
Australia’s currency, which has risen nearly 12 per cent since the global financial crisis, hit a five-month high of $AU7.13 in March.
It has since fallen to $US6.97 on Tuesday, and is now trading at $US2.8580.
While the dollar is still down around 6 per cent, the Australian economy is showing signs of recovery from the global recession.
The unemployment rate has fallen to 4.1 per cent and the labour force participation rate is up to 78.4 per cent.
Australia was already in recession when it hit the world financial crisis in 2008.
The unemployment rate in Australia fell to 4 per cent in January, but it has since jumped to 7.2 per cent at the start.
Labor’s unemployment rate stood at a record 6.9 per cent during the global economic crisis, but the economy has bounced back with a rebound in the last two months.
More than half of Australians aged 15 to 24 are now in full-time education, compared with just under one-third in 2007, according to the latest ABS data.
Australia’s unemployment rates are also down from last year, when the economy was growing at a more rapid pace.
“We’re still a relatively young country,” said Australian economist Mark Zandi, chief economist at Capital Economics.
Aussie currency, dollar down, currency gains on Australian dollar weaknessThe Australian currency is down as much as 5.3 per cent versus the US currency, but gained on the weaker US dollar, and the rise in the dollar has also helped to push up the Australian dollar.
After a strong start to the year that saw the dollar surge in value, the dollar slumped sharply on Monday against the Australian currency, dropping 0.2 cents to $AU0.2785.
The rise in Australia’s currency has boosted the Australian national debt to a record $US11.2 trillion, according the Reserve Bank of Australia.
Australian dollar, dollar up, dollar falls on Australian currency weaknessThe Canadian dollar is up as much $US1.10 to the US cent and is up 0,6 per cent so far this year, while the Australian cent has gained about 4 per, or 0.5 per cent to $AUD0.8205.
Inflation in the US has also been slowing down, with the consumer price index increasing by 0.3 percentage points to 1.8 percent in December.
Since then, however, it has fallen by more than 0.4 percentage points, and now sits at 1.7 per cent of the economy.
According to the Australian Bureau of Statistics, the number of people in Australia working full time rose by just under 100,000 last month, which was a decline of less than half the rate of growth in the population.
Last week, the Reserve Banks annual review of the Australian monetary policy announced that the Reserve would raise interest rates by two per cent this year and a further 1 per cent next year.
At the same time, the Bank of England raised interest rates for the first time in a quarter of a century.