Yet more Australian dollar bottom calls

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From the AFR:

The currency benefits of investing in blue chips stocks such as Rio Tinto, BHP Billiton and blood products group CSL that pay dividends in US dollars are fading, with equity strategists tipping the dollar doesn’t have too much further to fall and prioritising franking credits over currency plays.

…Matthew Ross, head of portfolio strategy at Goldman Sachs says the big adjustment in the Australian dollar has already happened, even though it is likely to head a little lower still – towards $US0.72 by this time next year.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.