Historical Exchange Rate Australian Dollar To Us Dollar
The exchange rate between the Australian dollar (AUD) and the United States dollar (USD) has fluctuated over time, with various factors affecting the value of each currency. In this article, we will explore the history of the AUD to USD exchange rate and how it has changed over the years.
The Early Years
The Australian dollar was first introduced in 1966, replacing the Australian pound. At that time, the exchange rate between the Australian dollar and the US dollar was fixed at 2.00 AUD to 1.00 USD. This fixed exchange rate continued until 1971, when the US dollar was devalued and the exchange rate was adjusted to 1.12 AUD to 1.00 USD.
The Floating Exchange Rate
In 1983, the exchange rate between the AUD and USD became a floating exchange rate, meaning that it was no longer fixed and was determined by market forces. This change allowed the exchange rate to fluctuate in response to economic and political events, such as changes in interest rates, inflation, and global economic conditions.
The 1990s and Early 2000s
During the 1990s and early 2000s, the AUD experienced significant fluctuations against the USD. In the early 1990s, the AUD was worth less than 0.60 USD, but by 2001, it had risen to over 0.80 USD. This rise was due in part to the strength of the Australian economy, which was experiencing a period of sustained growth and low inflation.
The Global Financial Crisis
The global financial crisis of 2008 had a significant impact on the AUD to USD exchange rate. As the crisis unfolded, investors flocked to the safety of the USD, causing the AUD to fall sharply. In October 2008, the AUD was worth just 0.60 USD, down from over 0.95 USD just a few months earlier.
The Recent Years
In recent years, the AUD to USD exchange rate has remained relatively stable, with the AUD generally trading between 0.70 and 0.80 USD. However, there have been some notable fluctuations, such as in early 2020 when the AUD fell to a 17-year low of 0.55 USD due to the COVID-19 pandemic.
Factors Affecting the Exchange Rate
The exchange rate between the AUD and USD is affected by a range of factors, including:
- Interest rates: Higher interest rates in Australia can make the AUD more attractive to investors, increasing its value against the USD.
- Inflation: Lower inflation in Australia can increase the value of the AUD relative to the USD.
- Commodity prices: Australia is a major exporter of commodities such as iron ore and coal, and changes in commodity prices can affect the value of the AUD.
- Global economic conditions: Changes in global economic conditions, such as economic growth, can affect the exchange rate between the AUD and USD.
Conclusion
The exchange rate between the Australian dollar and the United States dollar has fluctuated over time, with various factors affecting its value. While the exchange rate is currently relatively stable, it is likely to continue to be influenced by economic and political events both in Australia and globally.