Australia’s dollar will drop to 85 U.S. cents and may weaken further with the currency trading as a proxy for emerging markets that are being rattled by outflows as the U.S. withdraws stimulus, BT Investment Management Ltd. said.
Global stocks tumbled the most since June, as the biggest drop in emerging markets in two months prompted investors to seek havens in Treasuries, German bunds and yen. Natural gas reached a three-year high.
The Australian dollar dropped below 87 U.S. cents for the first time since July 2010 after China’s bank regulator ordered regional offices to increase scrutiny of credit risks in the coal-mining industry, according to people with knowledge of the matter.
Incoming Australian central bank board member Heather Ridout aims to bring more attention to the nation’s overvalued exchange rate as she joins the policy debate amid deliberations on lowering interest rates.
Reserve Bank of Australia board member Heather Ridout, 2011 Tour de France winner Cadel Evans and MotoGP champion Casey Stoner are among Australians named in the Queen’s Birthday Honors List announced today.