Some weird old bullhawks return today:
The dollar’s potential loss of its status as a high-yielding currency could cause the Aussie to plunge to US62¢, forcing the Reserve Bank to raise interest rates despite still-weak domestic growth, according to one of Asia’s most prominent currency strategists.
The weak consumer economy makes it difficult for the RBA to raise interest rates. But this makes Australia less attractive as a location for investment, weakening the demand for the Aussie dollar.
