What was the lowest recorded exchange rate of the Australian dollar (A$) in 2001?

Prepare for the HSC Economics Exam with comprehensive study materials, including flashcards and multiple choice questions. Each question offers hints and detailed explanations to boost your confidence and help you ace your exam!

The lowest recorded exchange rate of the Australian dollar in 2001 was US$0.48. This period was marked by significant economic challenges for Australia, including a downturn in commodity prices and a relatively weaker global economic environment, which impacted the value of the Australian dollar compared to other major currencies.

In the context of that time, fluctuations in currency values were influenced by factors such as shifts in trade balances, investor sentiment, and interest rate differentials. The recorded low exchange rate highlighted the vulnerability of the Australian economy during that year, reflecting both immediate economic pressures and longer-term trends in global finance.

The other exchange rates provided are not accurate representations of the lowest point for the Australian dollar in 2001. Thus, the choice of US$0.48 accurately captures the lowest value reached by the currency during that year, underscoring the impact of economic conditions on exchange rates.

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