Aussie dollar to remain high for years: PMAustralian Prime Minister Julia Gillard Wednesday warned the Aussie dollar would likely remain at a high level for years as it came to be seen as a "safe haven" amid global turmoil.
Gillard said as European economies suffered -- with even traditional currency strongholds such as Switzerland affected --- "for the first time in history Australia is being referred to as something of a global 'safe haven'."
"What is certain from all of this is our dollar is likely to remain relatively high for years to come."
The commodities-linked Aussie had a stellar run against the greenback in 2011, breaking through 110 US cents in July. It was trading Wednesday at about 106.16 US cents.
"It's well known that Asia's demand for our mining output -- together with the domestic investment to expand our mineral capacity -- has lifted demand for our currency, with its value up almost 60 percent against the US dollar since 2009," she said.
"There's another driver: investors looking to the Australian dollar as a substitute for betting directly on growth in our region -- especially in China."
The flipside was that the high currency had hurt some sectors badly, including
tourism, education exports and manufacturing, she said.
Source: AFP Asian Edition
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