Is the dollar’s fall over?

Since mid-April, the Australian dollar has plummeted around 11%. After such a dramatic fall, Robert Rennie, head currency strategist at Westpac  (ASX: WBC), has called for a more “sober reading” of the Aussie dollar’s prospects, stating that the speed at which it fell got a little excessive at times.

After hitting a 33-month low of US93.33c last week, the dollar has regained a portion of its strength and is now sitting at US94.88c, however, Rennie believes the dollar could reach as high as 98 US cents, and shouldn’t fall below its recent levels – for now, at least.

On the other hand, whilst the dollar has fallen in recent weeks, it is still sitting at quite a high value, which could prompt the RBA to cut rates sooner rather than later. Should it approve further rate cuts, which National Australia Bank (ASX: NAB) has predicted it will, the dollar would likely fall lower, which the RBA believes could help rebalance growth in Australia.

Without action being taken by the RBA however, it looks as though the dollar’s plunge could indeed by over for now.

The Australian Financial Review says “good quality Australian shares that have a long history of paying dividends are a real alternative to a term deposit.” Get “3 Stocks for the Great Dividend Boom” in our special FREE report. Click here now to find out the names, stock symbols, and full research for our three favourite income ideas, all completely free!

More reading

Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned in this article.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!