CANBERRA: Australian federal Treasurer Wayne Swan on Tuesday ruled out any government intervention in the currency market, despite a high Australian dollar having an adverse impact on trade-exposed industries, Xinhua news reports.
The strength of the Australian dollar, which remains comfortably above parity against the US currency, was a key factor behind BlueScope Steel’s announcement on Monday that it will end its export business and axe 1000 jobs.
However, Swan said the government stood by a market-based exchange rate, as it was a reflection of the local economy.
“We are committed to a floating Australian dollar,” he told ABC Radio on Tuesday, adding that the G20 group, which includes Australia, was pushing towards more market-based currencies.
The comment came as the Japanese government has flagged further government intervention in foreign-exchange markets, as Tokyo remains concerned about the yen’s appreciation.
BlueScope Steel’s announcement came after Australia Qantas airline announcement that it will cut 1,000 jobs, with OneSteel also confirmed last week the loss of 400 jobs due to the high dollar and weakened export demand.