December 17, 2017

Aussie Dollar Hits New High

Australian DollarFor the first time since the global financial crisis began the Australian dollar has reached a 2 year high on Wednesday jumping over US95.8c. A wave of commentary has been sparked from economists and entrepreneurs alike. Mining giant Andrew Forrest is telling Fairfax he expects the dollar to hit parity the US dollar shortly.

Earlier in May this year the value of the dollar was at it's low of 81.58c and has now made a substantial increase. There has been a continued weakness in the US where the Federal Reserve is continuing to prop up the American economy. Part of the recent boost has been driven by an indication from the Federal Reserve that interest rates will continue to rise.

Retailer David Jones has meanwhile recorded a full year net profit after tax of $170.8 million representing a 9% increase for the 12 months to 31 July. Full year sales grew by 3.4% to $2.05 billion.

The company's 2011 forecast was for a net profit increase of between 5-10%. Paul Zahra, chief executive, said the company's result was the highest profit and dividend since 2005.

"FY09-FY12 Strategic Plan is ahead of our stated targets " Zahra was pleased to comment. For two years since FY08 profit after tax had a compound annual growth rate of 12% per annum compared to their normal target rate of 5-10%.

"We are well positioned to fully leverage the next upturn in the economic cycle."