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Dollar hits record high against euro
The Australian dollar has hit its highest ever level against Europe's single currency, making imports in the continent cheaper than ever.
Early today,[link widoczny dla zalogowanych], the Australian dollar hit a record a lot of 83.18 euro cents, although it has has since drifted back a little.
The currency jumped several euro cent after Europe's central bank disappointed markets by resisting pressure to supply further support for debt laden countries like Italy and Spain by indirectly buying their debt.
St George chief economist Hans Kunnen said the high value of the dollar against the euro lifted the living standards of Australians by making imported goods cheaper.
"Clearly, imports from Europe are going to be cheaper and what we tend to buy from Europe is high end fashion and luxury goods,[link widoczny dla zalogowanych]," he said.
"It is really good for consumers,[link widoczny dla zalogowanych]."
Deshel Foods managing director Sebastian Burot,[link widoczny dla zalogowanych], whose company specialises in European fine foods,[link widoczny dla zalogowanych], said increasing value of the dollar meant the company had not lifted its prices in three years.
That's regardless of the prices of the goods he sells increasing in Europe as well as increasing electricity and petrol costs and annual wage increases for staff for the reason that time,[link widoczny dla zalogowanych].
"If the Australian dollar was the same price as 3 years ago our products would be 20 per cent more expensive,[link widoczny dla zalogowanych]," he explained.
Mr Kunnen said the low euro,[link widoczny dla zalogowanych], would see more Australians holiday in Europe and was bad news for that local tourism industry.
However,[link widoczny dla zalogowanych], he explained the effect on exporters could possibly be minimal.
"Normally when the Australian dollar strengthens it makes things more difficult for exporters but Europe isn't actually a major marketplace for Australian goods,[link widoczny dla zalogowanych].
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