Analysts mixed on Australian dollar prospects
Australian fruit exporters could be in for better times ahead if the country's currency continues to fall, but analysts are still mixed on what the prospects will be for exchange rates, website Farmonline.com.au reported.
The Australian dollar has fallen from highs of US$1.10 two weeks ago to US$1.02, while Entello Group financial analyst Brian Costello expects further falls to US$0.85 by late-2012, the story reported.
"The highest probability is that we have seen the worst of the market turmoil this week, but I still expect the dollar to continue to decline which will be welcomed by exporters," Costello was quoted as saying.
HSBC has predicted a fall to US$0.95 but St George Bank expects the currency to settle at US$1.02 over the next 12 months, the story reported.
Many analysts still have high expectations for the Australian dollar given the country's stable economy and close connection to Asia. National Australia Bank's (NAB) agribusiness business markets head Rod Fraser, told the website a 'true meltdown' was possible for the Australian dollar but he still predicted a close at US$1.06 by th end of the year.
RBS currency strategist Greg Gibbs forecast a currency recovery to US$1.10 in 2012, as debt crises were unlikely to cripple Asian economies, the story reported.
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