Jan
04

Aussie’s Drop Fully Savored by Vineyard as Hedges More Favorable

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  • Exporters increase currency protection to lock in weak Aussie
  • Currency drop to feed into investment and spending, CBA says

The Australian dollar has completed its third year of declines yet John Casella, whose family exports Yellow Tail wine around the world, is only now starting to fully savor its benefits.

Casella expects improved earnings as unfavorable currency hedges wind down and his company can lock in the weaker exchange rate with new contracts. A survey by National Australia Bank Ltd. showed exporters Down Under had about a third of their currency exposure protected by hedges in the third quarter and the contracts were more favorable than in the past, because they improved as the local dollar depreciated…

Aussie’s Drop Fully Savored by Vineyard as Hedges More Favorable

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