A plunge in the Australian dollar to its lowest level since the COVID-19 pandemic is complicating the task of the Reserve Bank of Australia as it prepares to meet next month to decide whether to cut interest rates.
Late on Friday, the local dollar hit US61.38¢, the lowest level since March 2020, increasing concerns that the fall would add to price pressures and bolstering the argument for keeping rates on hold for longer.
Source: https://www.afr.com/markets/debt-markets/asx-to-drop-as-markets-fret-currency-slump-will-put-off-rate-cut-20250109-p5l35r