ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -When the Australian dollar depreciates, or loses value, less foreign currency is required to purchase a given amount of Australian dollars. This makes Australian produced goods and services cheaper than before when compared with goods and services produced overseas.

Detailed explanation-2: -Prices and inflation For example, if goods and services in Australia are expensive relative to the same goods in other economies, over time, demand for Australian goods and services should decrease. This lowers the demand for Australian dollars and causes the Australian dollar to depreciate (as explained above).

Detailed explanation-3: -Australia’s dollar has depreciated significantly against the US dollar over the year, falling 14%-but the RBA has downplayed concerns surrounding the impact it will have on inflation.

Detailed explanation-4: -What is the US to Australian Dollar Exchange Rate? The exchange rate from USD to AUD varies, although generally the USD is about $. 09-$. 4 stronger than the AUD.