Shoppers, Travelers the Winners from Strong Aussie Dollar
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The Australian dollar shot ahead today as the US deferred raising interest rates - but the message for overseas travellers and online shoppers is to take advantage of it while it lasts.
Forecasters are certain our dollar will keep falling this year.
Overnight, the US Federal Reserve was spinning its wheels, surprising markets by hinting it will delay raising interest rates until later this year.
"We do not want to rule out the possibility that an increase in the target range could be warranted at a subsequent meeting," said US Federal Reserve chief Janet Yellen.
But that was enough for the stockmarket, and our dollar, to soar. At one stage it got above 78 US cents.
Jonathan Allara from online bike shop Bicycles Online said the volatility in the currency made it hard to do business.
"It's been a big change with a 30 per cent difference in six months in the dollar," he said.
Westpac Senior Currency Strategist Sean Callow said he thought the US Federal Reserve would still make a move.
"We'll see whether its a case of a few days a few weeks or longer, but really we still think the Fed is on track to raise rates this year."