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How High Can the Aussie Dollar Fly?

Thursday, 14 Apr 2011 | 12:34 PM ET

The Australian dollar is on a roll, and Australia's treasurer thinks the good times will last for a while.

Wayne Swan, the Australian treasurer, is proud. He's proud that Australia did not go into recession like the rest of the developed world, and he's proud of plans for a government budget surplus in 2012 or 2013, despite some near term economic weakness due to Japan's crisis and Australia's own natural disasters.

He's also pretty proud - or at least optimistic - about the Australian dollar, which he thinks will ride higher commodity prices for some time. "Given the growth in Asia, given the demand in Asia, given the fact that there's a construction boom in Asia which will last for a long time, that will mean that the prices will be permanently higher," he said. "They may not be as high as they are now and they will come off a bit, but they will be historically higher as we go forward." And that can only help the Aussie dollar.

Watch the clip to hear the whole discussion.

Hopping Australian Dollar
The Aussie dollar has gained almost 13% on the Greenback in the last year. Wayne Swan, Australian treasurer, offers insight.

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