In Reply to: US$ is one of the great mysteries - posted by Filo on Sunday, 26. October 2008 at 09:42 Bali Time:
1. In times of trouble, overseas investors park their money in secure US treasury bonds. The money flows stongly into US.
2. Australian currency is seen as a commodity currency as we are reliant on happenings to our trading partners. So the currency is much more volatile.
Somebody should tell all of the overseas investors that US treasury bonds pay 2% whilst 6% is available in Ozzie banks.
Good reason to bring back Australian treasury bonds.