Australian economy: Mining slowdown pulls currency down

SYDNEY: The Australian dollar slipped below parity with the greenback for the first time in 12 months on Saturday on fears that the mining-powered economy was slowing.

Analysts said the currency’s robust run may have peaked as Australia’s historic boom in mining investment plateaus and uncertainty clouds its economic transition. The Reserve Bank of Australia slashed interest rates to a record low of 2.75% this week in a bid to stimulate Australia’s non-mining economy, citing sluggish growth and employment and the protracted strength of the dollar.

Published in The Express Tribune, May 12^th, 2013.

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