For the first time since the Australian dollar floated in 1983 the $A has hit parity- that is it was 1 to 1 with the US $ even if it was for a relative short time. As I write this the $A buys 98.77 cents and as is the nature of our currency the volatility has meant that it will continue to fluctuate.
An interesting point for the impacts of the high dollar which has been hovering in the 99 cent bracket is the whilst the theory states that an appreciation is negative for growth and future growth (see page 132 of Dixon to update yourself) the reality is whilst the economy is booming then the appreciation will actually be good as it will mean the excessive growth will be slowed (or smoothed out) and thus there is less need for macroeconomic policy action.
For a good summary of the Aussie dollar see 'Why our econocrats reckon the high dollar is a good thing'
Before I leave you should check out the latest figures that are available.
