Swan rules out dollar intervention

FEDERAL Treasurer Wayne Swan has ruled out any government intervention in the currency market despite a high Australian dollar having an adverse impact on trade-exposed industries.

FEDERAL Treasurer Wayne Swan has ruled out any government intervention in the currency market despite a high Australian dollar having an adverse impact on trade-exposed industries.

Mr Swan also rejected a renewed call for a sovereign wealth fund, financed by the planned minerals resource rent tax.

But the Treasurer signalled he will investigate claims some contracts for big resources and energy projects have shut out Australian manufacturers.

On the Aussie dollar, partly blamed for a decision by BlueScope Steel to end its export business and axe 1000 local jobs, Mr Swan said the Government stood by a market-based exchange rate.

"We are committed to a floating Australian dollar," he told ABC Radio today.

The Japanese Government has flagged further government intervention in foreign-exchange markets as Tokyo remains concerned about the yen's appreciation.

Mr Swan said the high Australian dollar - trading at about $US1.04 - was a reflection of the local economy.