The Australian dollar’s rise to parity with its U.S. counterpart stalled on the speculation that the central bank may increase the interest rates with the slower pace as China is likely to plan the revaluation of the yuan.
Some experts think that the Reserve Bank of Australia has raised the borrowing costs too soon and too high after increasing the overnight cash rate to 4.25 percent this month from 3 percent in October. The Australian currency may fall 16 percent by the end of this year as the high borrowing costs may hurt the economic growth.
AUD/USD dropped to 0.9170 as of 10:12 GMT after opening today at 0.9206.
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