Australian Dollar To Us Dollar Exchange Rate History
The exchange rate between the Australian dollar and the US dollar is an important factor in the economic relationship between the two countries. The exchange rate refers to the value of one currency in terms of the other. Over the years, the exchange rate between the Australian dollar and the US dollar has fluctuated, reflecting changes in economic conditions and market sentiment.
Early History
Before the Australian dollar was introduced in 1966, the country used the Australian pound. The exchange rate between the Australian pound and the US dollar was fixed at 2.08 US dollars per pound in 1946, and this rate remained unchanged until the decimalization of the Australian currency in 1966.
1970s to 1980s
After the introduction of the Australian dollar, the exchange rate with the US dollar was initially fixed at 1.12 US dollars per Australian dollar. However, in 1971, the US dollar was devalued, leading to a floating exchange rate regime. The Australian dollar appreciated against the US dollar in the 1970s, reaching a high of 1.49 US dollars per Australian dollar in 1973.
However, in the early 1980s, the Australian dollar began to depreciate against the US dollar due to a combination of factors, including high inflation, low interest rates, and a large current account deficit. By 1985, the exchange rate had fallen to 0.55 US dollars per Australian dollar, a record low.
1990s to 2000s
In the 1990s, the Australian dollar recovered against the US dollar, reaching a high of 0.80 US dollars per Australian dollar in 1996. This was due to a combination of factors, including higher interest rates and a strong economy.
The exchange rate remained relatively stable in the early 2000s, fluctuating between 0.50 and 0.80 US dollars per Australian dollar. However, in the late 2000s, the Australian dollar began to appreciate again, reaching parity with the US dollar in 2010.
Recent Years
Since 2010, the exchange rate between the Australian dollar and the US dollar has remained relatively stable, fluctuating between 0.70 and 1.10 US dollars per Australian dollar. However, the COVID-19 pandemic has caused significant fluctuations in the exchange rate, with the Australian dollar depreciating sharply against the US dollar in early 2020 before recovering somewhat later in the year.
Conclusion
The exchange rate between the Australian dollar and the US dollar has a long and interesting history, reflecting changes in economic conditions and market sentiment. While the exchange rate has fluctuated significantly over the years, it has generally remained within a relatively narrow range. However, events such as the COVID-19 pandemic can cause significant fluctuations in the exchange rate, highlighting the importance of monitoring and managing currency risk.