Dollar tipped to fall further
West Australians hoping to enjoy an overseas holiday may have to take off soon, with the Australian dollar tipped to fall even further against key currencies.
Bank of America Merrill Lynch analysts are the latest to lower their forecasts for the dollar, which ended last week at US76.35�.
Senior economist Saul Eslake said the dollar was likely to end this year at US73� and fall further to US68� by the end of next year.
As recently as late January, the dollar was worth US80�. It is now more than two years since it was at parity with the greenback.
But it is not just against the US dollar that the Aussie has lost ground. Even against the Indonesian rupiah, the Australian dollar has fallen in value by almost 5 per cent since December.
The lower dollar not only makes it more expensive to head overseas but also drives up the price of imported goods.
A lower Australian dollar should help the overall economy, particularly export-oriented sectors, but it may not do the trick for some time.
Analysts believe economic growth will be lower than forecast in the latest Budget update, with unemployment tipped to increase as mining and manufacturing industries slow.
