The head of the Reserve Bank is confident that the Australian dollar will fall further after recent falls in commodity prices.
RBA governor Glenn Stevens says that while there were times the currency wasn’t falling as fast as he would have liked, it is still going in the right direction.
“It seems to me that the exchange rate is doing more or less what you would have expected it to do,” he told a parliamentary committee on Friday.
“Where it will go from here, nobody knows, these things are inherently unpredictable, but I can certainly think of reasons why it may go down some more.”
The Australian dollar has fallen almost 20 US cents in the past six month to around 77 US cents as iron ore and oil pries slumped.
Mr Stevens also said he expected the unemployment level to continue to rise.