Chanticleer

Falling dollar a new spanner in the works for RBA, business

In case rising bond yields, jumpy economic data and Donald Trump haven’t made the RBA’s job hard enough, there’s another factor at play.

Jan 14, 2025 – 1.39pm

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The falling Australian dollar has emerged as a new threat to interest rate cuts, giving the Reserve Bank even more to think about ahead of February’s crucial board meeting and potentially prolonging Australian shoppers’ pain.

While the Australian dollar has been on a one-way trip south against the US dollar since October – from US69¢ to just below US62¢ – the new part is how Australia’s currency has also slid against those of major trading partners.

Anthony Macdonald is a Chanticleer columnist. He is a former Street Talk co-editor and has 10 years' experience as a business journalist and worked at PwC, auditing and advising financial services companies.