Fed: Low A$ does not reflect basics in economy Costello in US

AAP General News (Australia)
04-28-2001
Fed: Low A$ does not reflect basics in economy Costello in US

Treasurer PETER COSTELLO says the current Australian exchange rate does not reflect
the fundamentals in the Australian economy.

During his US visit, Mr COSTELLO told reporters the Australian dollar depreciated against
the US dollar in the latter part of 2000 and early 2001.

He said in part it was caused by the rise of the US dollar against currencies throughout
the world.

Mr COSTELLO says the Australian economy is still based on low inflation, a very strong
budget position, good growth in the economy, an improved taxation system and expected
strong growth in the 2001-02 financial year.

At the close of Australian trade yesterday, the Australian dollar was worth US51.11
cents, having plunged to below 48 cents earlier in the year.

AAP RTV dep/kb/

KEYWORD: DOLLAR COSTELLO (CANBERRA)

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