AUSTRALIA dollar has lost some of its edge in 2017 as the Australian dollar strengthens, with the euro and Japanese yen also sliding.
In fact, the Australian market is looking set to be the most volatile of the global financial markets this year.
The key driver for the Australian currency’s fall is the Federal Reserve’s decision to hike interest rates in the second quarter.
That could cause the Australian exchange rate to rise by as much as 20 per cent.
The dollar is also facing renewed concerns about its future role as a reserve currency, as the Trump administration continues to move to cut off credit to the world’s third-largest economy.
The move has sparked concern that the Australian economy will slow, even as foreign investment continues to rise.
In the long term, however, the dollar’s slide is expected to be much less pronounced.
The Australian dollar is already at a low level, having strengthened by about 0.1 per cent against the greenback over the last month, after hitting a low of about 0