The Australian dollar has fallen below US60 cents for the first time since the COVID-19 pandemic, affected by global economic uncertainties. Early on the morning of the announcement, the dollar reached a low of US59.33 cents, according to Bloomberg data. Although it briefly rebounded to US60.04 cents later in the morning, the overall trend signals ongoing instability.
This decline in the Australian dollar coincides with a precarious moment for the Australian Stock Exchange, which is bracing for further losses amid escalating tariffs and trade disputes initiated by the United States. The imposition of global import levies by the White House has heightened fears of a potential recession in the US, adding to the anxiety surrounding the global economy.
China, as a significant target of US tariffs, also poses a risk to Australia’s economic stability. Any disruptions there could have a ripple effect on Australian markets and businesses.
In response to the recent US tariffs that include a 10 per cent levy on Australian imports, Prime Minister Anthony Albanese has clarified that Australia will not impose reciprocal tariffs. Reflecting on the dollar’s fluctuating value, it was worth more than US69 cents in September last year and remained above US64 cents as recently as mid-December.
The dollar’s depreciation is influenced not only by trade tensions but also by recent spikes in the US dollar’s value, driven by strong employment statistics in the US. Overall, the situation remains fluid, with significant implications for the Australian economy.