The Australian dollar on Tuesday was hovering in value against the world's reserve currency after having plunged to its lowest rate in almost three years against its cross-Pacific rival, Bloomberg reports.
Bonds issued by the South Pacific nation's government rose in the aftermath of President Richard Fisher with the Federal Reserve Bank of Dallas indicating investors should not be overly concerned about the U.S. Federal Reserve drawing down on monetary stimulus plans that spur the economy. Chairman Ben Bernanke with the Fed last week said the body is aiming to pull back.
The treasurer of Australia did acknowledge that the Aussie has dropped against the U.S. dollar during a speaking engagement.
"It's good to see the Australian dollar depreciating, as it should as our terms of trade weaken and as the U.S. begins the very long journey back to normal monetary policy settings," Treasurer Wayne Swan with Australia said in Canberra, according to Bloomberg.
The Aussie's advance against the U.S. dollar pushed as high as 0.1 percent during the Tuesday trading session.
Australia and China are projected to face various near-term challenges regarding development and growth, according to AAP.
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