Us Dollar To Australian Dollar Exchange Rate History
Exchange rates are the values at which one currency can be converted into another. The exchange rate between the US dollar and the Australian dollar is an important one, given the trade and economic ties between the two countries. This article explores the history of the exchange rate between the US dollar and the Australian dollar.
Post-World War II
After the end of World War II, the US dollar became the dominant currency in the world. The Bretton Woods Agreement of 1944 established the US dollar as the world's reserve currency, which meant that other countries would hold US dollars as a store of value. The exchange rate between the US dollar and the Australian dollar was fixed at 1 AUD = 0.89 USD.
1970s
In the 1970s, the Bretton Woods Agreement broke down and the US dollar was no longer convertible into gold. This led to a period of floating exchange rates, where the value of currencies was determined by supply and demand in the foreign exchange market. The exchange rate between the US dollar and the Australian dollar fluctuated between 0.75 and 1.20 AUD per USD.
1980s and 1990s
In the 1980s and 1990s, the exchange rate between the US dollar and the Australian dollar fluctuated widely, as the two countries experienced different economic and political conditions. The Australian dollar was affected by factors such as the price of commodities, particularly gold and oil, which are important exports for Australia. The exchange rate reached a low of 0.49 AUD per USD in 1986, and a high of 1.10 AUD per USD in 1997.
2000s
In the 2000s, the exchange rate between the US dollar and the Australian dollar continued to fluctuate, but with a general trend towards a stronger Australian dollar. The Australian economy benefited from the commodities boom, particularly with China's demand for Australian resources. The exchange rate reached a low of 0.48 AUD per USD in 2001, and a high of 1.10 AUD per USD in 2011.
2010s
In the 2010s, the exchange rate between the US dollar and the Australian dollar continued to be influenced by global economic conditions, particularly the US Federal Reserve's monetary policy. The Australian dollar reached a peak of 1.10 AUD per USD in 2011, but has since declined to around 0.75 AUD per USD in 2021.
Conclusion
The exchange rate between the US dollar and the Australian dollar has a long and varied history, reflecting the changing economic and political conditions in both countries. While the exchange rate has fluctuated widely over time, it has generally trended towards a stronger Australian dollar in recent years.