The dollar's strength against the euro and yen take much of the spotlight around currency fluctuations, but the weak Australian dollar is increasingly a part of the mix.
The currency is down more than 26% against the dollar since May 2013, when it was at parity with the U.S. greenback. The decline reflects the pessimistic outlook for the nation and the slowdown of a once booming mining sector. And according to a WSJ report, the record number of short positions on the currency may be at a tipping point.
U.S. companies doing business in Australia reported a softening in the market and linked some of their foreign exchange losses to the decline in the dollar there. Kellogg Co. said sales there declined and expects the environment to remain challenging.
Business information company Dun & Bradstreet Corp. sold its Australia business and will work with partners to work in the region, according to a comments made by chief executive Robert Carrigan during an earnings call this week.
Genworth Financial Inc. , which offers mortgages, insurance and other products, said earnings from operations in Australia fell slightly and is selling off some of its life insurance holdings there. Margins there are expected to decline, yet the company remains committed to doing business in the country.
"I think overall, we still feel good," CFO Jerome Upton told analysts this week. "But we acknowledge we're going to feel some pressure in energy-related and mining-related areas."
(END) Dow Jones Newswires
August 07, 2015 11:40 ET (15:40 GMT)
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