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Run on US bank sends markets tumbling August 18, 2008

Posted by malibusac in Currency News.
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With the banking troubles weakening the US dollar, the Australian currency burst through US98ยข in trading last night to a new 25-year high.

One bright spot for Australians is the reduced chance of more official rate rises.

The ripples from the US home-lending industry may be one of the triggers for an eventual cut in mortgage rates for Australian home buyers, if they accelerate the slowdown in economy activity here and help reduce inflation to within the Reserve Bank’s target zone.

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