# Australian dollar nears a tipping point thanks to ultra-low rates | FMT

> Foreign exchange traders are increasingly using the Australian dollar as a funding currency rather than an investment, as interest rates fall to a record low of 0.75 per cent. Drought, wildfires and the coronavirus are adding pressure on policymakers.

- Date: 2020-02-24 · published 2020-02-24T12:00:00.000Z
- Category: macro · region Australia · magnitude low
- Page: https://feedsoft.ai/events/54855-australian-dollar-nears-a-tipping-point-thanks-to-ultra-low-rates-fmt
- Commodities: [Australian Dollar (USD per AUD)](https://feedsoft.ai/c/AUDUSD.md)

## Why it matters

A currency that is losing its carry appeal may weaken further, which lowers the dollar cost of Australian grain and meal exports.

## Read by commodity

- AUDUSD: bearish ▼

## Sources

- freemalaysiatoday.com: https://www.freemalaysiatoday.com/category/business/2020/02/24/australian-dollar-nears-a-tipping-point-thanks-to-ultra-low-rates

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.