January 2nd 2025.
It's been a rough start to the new year for Australians traveling abroad, as the Australian dollar has hit its lowest point against the US dollar in almost five years. Just yesterday, our currency dropped below 62 US cents, and this morning it fell even further, reaching a low of 61.84 at one point. This is the weakest it's been since the early days of 2020, when the pandemic first hit.
But there's some good news amidst the chaos - after a bit of a stumble, the Aussie dollar rebounded to just above 62 US cents by midday. The earlier decline was triggered by a significant sell-off of the Chinese yuan, which came after Chinese President Xi Jinping acknowledged the economic uncertainties that both China and Australia are facing in his New Year's address.
He spoke of new challenges and pressures, but also expressed confidence in our ability to overcome them through hard work. And it seems like we'll need that determination, as the Aussie dollar has been struggling for quite some time now. In fact, this downward trend has been seen throughout the entire year of 2024.
Over the past 12 months, our currency has dropped about 8% against the US dollar, around 7% against the British pound, and 3% against the Euro. This is all part of a larger global trend, with the US dollar remaining strong for the past four months, largely due to Donald Trump's re-election. With his inauguration just around the corner, many are speculating about the potential impact his policies could have on the global economy and exchange rates.
His promises to impose heavy tariffs on imports from countries like China, Mexico, and Canada are causing concern and could have far-reaching effects across various markets. As we wait to see how these promises will be implemented, many are keeping a close eye on the fluctuating exchange rates.
In the meantime, it's important for Australians to stay informed and aware of these developments, especially if they have travel plans or investments overseas. One way to stay up to date is by downloading the 9News app, which provides notifications for breaking news, sports, politics, and weather. It's available on both the Apple App Store and Google Play. Let's hope for a smoother ride ahead for our Aussie dollar in the new year.
[This article has been trending online recently and has been generated with AI. Your feed is customized.]
[Generative AI is experimental.]
