Australia’s dollar is the biggest loser among major currencies this year, tumbling 9.9 percent against a basket of nine peers including the euro, yen and pound, according to Bloomberg Correlation Weighted Indexes. It’s headed for its biggest annual decline based on those indexes since it tumbled 11 percent in 1990.
Pacific Investment Management Co. and BlackRock Inc., which manage almost $6 trillion combined, say the Aussie is either overvalued or due for further losses as the country adjusts to the end of a mining-investment boom and a slowdown in China, which buys a third of its merchandise exports.
The currency’s record 10-month run above $1 ended in May after the Reserve Bank of Australia cut its main interest rate by a quarter-percentage point to 2.75 percent to stoke growth.
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