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Exports hurt by strong dollar: Trade Minister

Exports hurt by strong dollar: Trade Minister article image
Minister for Trade Simon Crean has highlighted the plight of Australian exporters struggling with a strong Australian dollar, which has now surged to a 14-month high against the US dollar. "When the dollar rises it’s harder for exporters. When you’ve got the volatility it makes it hard, especially when it’s going up," he remarked. Crean said it was important for exporters to understand how the rise in the dollar would affect their trade. "Most of the exporters I have spoken to, whilst they don’t like it, they’ve understood over the past 25 years how to adjust to it. They either hedge differently or they build factors in that take account of the fact that the dollar might rise," he said. The Australian dollar broke the US93c barrier very briefly during the week, but has since settled to trade at around US92.5c. The dollar's performance is a turnaround from last October when it bottomed out at US60c. Experts are predicting parity between the Australian and US dollar in about six months.

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