Here are the charts for British Pound and Australian Dollar against a basket of currencies since 1990:
Labour news: Sue Gray and budget update
3 hours ago
Thursday, 14 October 2010
Currency Wars: GBP, AUD
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6 comments:
From 1990 huh?
Talk to a few coffin-dodgers and ask them how many dollar per pound they used to get back in the day!
Sterling just goes down and down and down. It used to be a pound of silver didn't it?
SL, but they both follow the general rule that currencies go up and down between 0.8 and 1.2. AUD is near the top and GBP is jsut below the bottom of that range.
In 2001 it was the other way round, so the net effect is that GBP has halved (or AUD doubled) in nine years. But compared to 1997, GBP is only ten or fifteen per cent down. And so on.
Yes, I've been following the AUD for some time, for particular reasons. Interesting, huh?
JH, problem is, you've missed the boat. If anything, now is the time to covert AUD back into GBP.
Hmm. I'd agree in general, but there are reasons to think the AUD will remain above its historic (1990s) GBP exchange rate:
1) the UK soon won't have any oil
2) Australia will continue to be a major resources exporter under almost all plausible world economy scenarios
John B, just for clarity, the scale on that chart is relative to the average strength of the currency itself, i.e. the long run average of each currency is 1.0.
So even if AUD does particularly well in future, it will still swing up and down round about 1.0.
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