Historical Exchange Rates Australian Dollar To Us Dollar
If you are planning to travel to the United States or do business with Americans, it is important to know the historical exchange rates of the Australian dollar to the US dollar. The exchange rate is simply the value of one currency in terms of another currency. The exchange rate between the Australian dollar (AUD) and the US dollar (USD) fluctuates constantly and is affected by various economic and political factors.
Introduction
The Australian dollar was introduced in 1966, replacing the Australian pound. Since then, the AUD has become one of the most traded currencies in the world, and its exchange rate with the USD has been closely monitored by traders and investors alike. In this article, we will look at the historical exchange rates between the AUD and the USD, and the factors that have influenced them over time.
1970s: The Nixon Shock
In the 1970s, the AUD was pegged to the USD at a fixed exchange rate of USD 1.12 per AUD. However, this fixed exchange rate was abandoned in 1971, when US President Richard Nixon announced the "Nixon Shock" and ended the convertibility of the USD into gold. This led to a period of volatility in the currency markets, and the AUD initially depreciated against the USD.
1980s: The Rise and Fall of the AUD
In the 1980s, the AUD experienced a period of rapid appreciation due to high interest rates and a strong economy. By 1984, the AUD was trading at almost USD 1.10. However, this appreciation was short-lived, and the AUD began to depreciate again in the late 1980s due to falling commodity prices and a weaker economy.
1990s: The Asian Financial Crisis
In the 1990s, the AUD was affected by the Asian financial crisis, which led to a depreciation of the currency against the USD. However, the AUD began to recover in the late 1990s due to a stronger economy and higher commodity prices.
2000s: The Mining Boom
In the 2000s, the AUD experienced a period of sustained appreciation due to a mining boom in Australia and high commodity prices. By 2011, the AUD was trading at almost USD 1.10 again. However, this appreciation was again short-lived, and the AUD began to depreciate again in the late 2000s due to falling commodity prices and a weaker economy.
2010s: The Reserve Bank of Australia
In the 2010s, the AUD has been influenced by the policies of the Reserve Bank of Australia (RBA), which has been trying to keep the exchange rate low to boost exports and the economy. The AUD has also been affected by the strength of the US economy and the policies of the US Federal Reserve, which has been raising interest rates and strengthening the USD.
Conclusion
Overall, the historical exchange rates between the Australian dollar and the US dollar have been influenced by a variety of economic and political factors over time. While the AUD has experienced periods of rapid appreciation and depreciation, it has remained one of the most traded currencies in the world. As a traveler or a business person, it is important to keep an eye on the exchange rate between the AUD and the USD to make informed decisions about your finances.