The escalating value of the Australian dollar is predicted to continue, squeezing profits for the country’s fresh produce exporters.
According to the Commonwealth Bank of Australia, small exporters in the country predict the currency will peak at US$1.16, on 25 September.
This is A$0.25 higher than the level most exporters believe makes them uncompetitive, stated a report by Bloomberg.
“The Aussie Dollar Barometer reveals that small and medium sized enterprises expect the Australian dollar to remain well above parity with the US dollar this year and into 2012,” Commonwealth Bank currency strategist Joseph Capurso told the news agency.
The report stated the Australian dollar had strengthened by 31 per cent over the past year.
According to Mr Capurso, around 80 per cent of the country’s exporters are considering changing their selling prices.
