On Thu, 09 Oct 2008 23:39

1 +1100, modern <self@location.org> wrote:
>Newcastleboy wrote:
>> On Thu, 09 Oct 2008 16:13:43 +1100, modern <self@location.org> wrote:
>>
>>> Newcastleboy wrote:
>>>> 67 US Cents, three months 47 US cents. Us poor Aussies sees DVD
>>>> affordability too expensive to get from our savioured R1 merchant the
>>>> esteemed DVDPACIFIC even. Let's hope they release those precious R1
>>>> DVDs in nice PAL versions with similiar or better extras. I now
>>>> declare overseas DVD buying too dear
>>> I wondered why the exchange rate was so good.
>>> It might have been a favour for the Iraq War.
>>> Now with the new government the favour is taken away.
>>> But I'm only guessing.
>>
>> No had nothing to with what you think. Basically all those US
>> investors who are losing money in the US are collecting their
>> Australian investments, selling stocks / shares so to speak, and
>> bailing out, therefore making our dollar go down. It's all
>> sharemarket related.
>>
>> - NewcastleBoy
>
>I know stuff all about economics. But I heard once that trading in
>currencies might cause the exchange rate to go down. And if people
>stopped doing that for a while, it might get better.
>But it is at the pleasure of whoever does investing, and who knows
>what changes their pleasure.
An easy way to look at this is to look at wherr various countries
interest rates are at. US is about 0.5%, Japan is about the same,
Australia is at 6%, so obviously you will invest your money in the
country that pays more for interest rates. Problem is with all the
sharemarket / houseing volatility in US a lot of investors / home
owners have got burnt, and have no money, so are cashing in on their
aussie investments = selling shares etc, taking loads of money from
our economy from their trade offs, and bailing out, hence our currency
suffers
- Newcastleboy