Keep Economy Flexible
Australian Treasurer Joe Hockey concedes that marked changes in the Australian currency can be disruptive for business, Yahoo reported. But history shows the economy can cope with a falling exchange rate, despite it hitting a fresh five-and-a-half-year low against the US dollar, he says. Since being floated on the foreign exchange market in December 1983, the Aussie dollar has ranged between more than 100 US cents and less than 50 US cents. “Australia’s flexible economy can cope with that sort of volatility,” Hockey told reporters in Sydney on Friday. The dollar is trading about 77.75 US cents after a low of about 77.50 US cents.