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Australian dollar climbs against the US greenback

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Andrew Forrest, Australia’s fourth richest man, predicts the Australian dollar will soon reach parity with the US dollar. The CEO of Fortescue Metals Group believes the resources boom in Western Australia and Queensland is responsible for driving our dollar to the 20 September conversion rate of 95.64 US cents, its highest since mid 2008. "That’s a vote on how good Australia is," Forrest said. Forrest, who is worth $4.24 billion, thinks the trajectory of the Australian currency is rising steadily as growth triggered by the resources boom spills over into other industries. Australian mineral and energy exports have climbed over the last 12 months, attracting interest from foreign investors which Forrest believes will extend to a "broader growth story" across the whole Australian economy. Forrest’s prediction is supported by a weak US dollar and speculation the Reserve Bank of Australia will lift interest rates next month. Higher interest rates should attract investors looking for high returns.

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