Value of the Australian Dollar

The Australian dollar was introduced in 1966. At this point, relationships between various forms of international currency depended on the Bretton Woods system, which was a rate system using a fixed exchange rate and based upon the United States dollar. However, rather than basing the Australian dollar against the United States dollar, it was balanced against the British pound. The equivalent value was close to that of 1 gram of gold. The Australian dollar was floated on the 8th of December in 1983. This allowed the value of the dollar to vary in accordance with supply and demand from money markets across the globe.

In the following two decades, the highest value attained by the Australian dollar in comparison to the United States dollar was slightly more than 96.6 United States cents. This was achieved on the 14th of march in 1984. The lowest value the Australian dollar ever reached once it was floated onto the market came in April 2001, when it was worth approximately 47.7 United States cents. However, the Australian dollar would bounce back to a value slightly past 96 United States cents in the middle of 2008, and later that year, surpassed 98 cents on the United States dollar. Although the Australian dollar dipped significantly from the high it reached as the year 2008 came to a close, the currency gradually became stronger in 2009 until it reached 94 United States cents. On the 15th of October in 2010, the Australian dollar reached an equivalence for the first time in its history with the United States dollar since it became a currency that could be traded freely.

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