Australian dollar approaches 3-year low
The Australian dollar hit near three-year lows Friday morning, dipping below 90 US cents to $0.89 as the greenback gained on better-than-expected US economic data.
The weak Aussie dollar may come as a relief to the country's miners as they struggle with increasing labour and production costs.
By selling in US dollars, Australia's miners stand to gain, the ABC reports.
"Obviously when you're Australian, and you're using an Australian labour force and Australian cost base, the fact that you're selling in US dollars and converting it back at a lower exchange rate means, you're effectively getting more in Australian dollar terms for the product that you're selling," Rob Brierley, head of research with Patersons Securities told the ABC.
Over the past few months the country's mining companies have been cutting costs at every chance. Last week jobs cuts in the coal sector hit 11,000.
Mining is a major contributor to Australia's GDP – about 10% – and has brought about $400 billion in investments to the state over the past decade.
In June the dollar hit a 33-month low at 92 US cents, also on indications of a US recovery.
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