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The Guardian - AU
The Guardian - AU
Business
Stephanie Convery

Why is the Australian dollar falling – and what does it mean for interest rates, travel and the economy?

Nicki Hutley United States Economy Australian Dollar Interest Rates Donald Trump Australia Tony Sycamore RBA China
Australian dollar coins
Economists say the weaker Australian dollar is due to a combination of a strong US dollar and instability in the Chinese economy. Photograph: Joel Carrett/AAP

The Australian dollar has had a rocky start to the year, dropping below 62 US cents on Wednesday and hitting a low of 61.84 US cents on Thursday morning. Although it has recovered slightly in early trade on Friday, it has been on a steady downward trajectory since 30 September last year, when it bought 69.32 US cents. But Thursday was the first time it has been below 62 US cents since 2022.

So what does this mean for interest rates, travel and Australia’s economy in the coming year?

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