Aussie strength causes problems for corporates after commodities fall
A recent dislocation between the Australian dollar and the price of commodities could drive Australian mining companies to reassess their hedging strategies, as their exposure to commodity prices no longer acts as a natural hedge, according to banks serving the sector.
The Australian dollar has historically moved broadly in tandem with commodity prices, but as the currency has remained strong in recent months, commodities have dropped sharply. Having been priced as high as $149.4 per metric ton
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