National Australia Bank Limited
(ASX:NAB) says a lower Australian dollar is providing good news for growers and it is forecast to continue on this trend.
The local currency is now buying below $US0.90 and NAB expects it to stay around $US0.88 in the fourth quarter this year and fall to $US0.85 by mid-2015.
The currency forecast compares with NAB’s expectations for Australia’s key cash rate to remain on hold at record lows until the end of 2015.
NAB has attributed a fall in the Aussie dollar to a rise in volatility on global markets, an unwinding of long positions and declining metals prices.
National Australia Bank reported a net profit of $2.86 billion in six months to the end of March 2014.
