For a while, the Australian dollar seemed to be trapped in a low-value cycle. But suddenly, it\u2019s made a comeback. The Aussie dollar has surged over 70 US cents, marking a moment not seen for years. But the reality isn\u2019t as simple as it sounds. As the value of the Australian dollar rises, it\u2019s creating some unexpected and unsettling consequences for personal finances, including superannuation funds.<\/p>\n\n\n\n
On the surface, a stronger dollar might seem like a win. After all, it means Australians can buy more US assets, like tech stocks or even crypto, for less money. But the downside is that a stronger Aussie dollar actually puts pressure on the value of Australian superannuation investments, which are increasingly invested overseas. In fact, some of these foreign assets could lose significant value when converted back to AUD.<\/p>\n\n\n\n
The recent jump in the Aussie dollar is largely the result of global market shifts, with Donald Trump\u2019s policy of deliberately devaluing the US dollar playing a major role, explains Yahoo Finance<\/a>. As the greenback weakens, other currencies, like the Aussie dollar, begin to gain strength. However, this isn’t always a good thing for Australians who have large sums invested in foreign assets, as these gains don’t translate well back into Australian dollars.<\/p>\n\n\n\n