Investing.com - A weaker exchange rate is important in Australia''s economy, Reserve Bank of Australia Deputy Governor Philip Lowe said Tuesday, but he declined to say if the current level was appropriate.
Lowe made the comments at the Q&A session following his speech at the Australian Securities and Investments Commission forum titled "Opportunities and Challenges for Market-based Financing."
Lowe was asked whether the RBA thinks the Australian dollar above $0.9100 is "uncomfortably high."
He answered by saying that "if the exchange rate has to continue playing the stabilizing role, it would need to come down in time" because terms of trade has declined and mining as a share of GDP has also fallen.
"In time, the market did adjust and the exchange rate has obviously come down," he said, referring to a drop in the past year.