SYDNEY: The Australian dollar slumped below 90 US cents yesterday after central bank governor Glenn Stevens said he wanted to see it at 85 US cents to help stimulate trade-exposed sectors of the economy.
Stevens also said he expected the US Federal Reserve to scale back its stimulus programme “before too much longer”.
Stevens said he would prefer a lower dollar over lower interest rates as a mechanism to spur the economy.
“To the extent that we get some more easing in financial conditions, at this point it’s probably more preferable for that to be via a lower currency at the margin than lower interest rates,” he said.
AFP
