InvestSMART’s Evan Lucas says the “biggest and the baddest economies tend to win out” in times of financial uncertainty.
“And what I mean by that is we know that all economies are trying to support themselves and the central banks are cutting rates to emergency levels to try and assist that,” he said.
“So the Federal Reserve (US) comes into this in a big way.”
This week the US dollar fell sharply due to cutting rates by half a per cent, with expectations they will do it again, which puts downward pressure on the dollar.
The Australian dollar also fell this week but found a floor due to these emergency measures taken by central banks around the world.