Aussie dollar likely to fall 4% more by next year, say forecasters

Singapore

THE top Australian dollar forecaster sees a further 4 per cent loss by mid-2015, cushioning the economy as the Reserve Bank takes steps to curb a housing boom.

HSBC Holdings, the most accurate predictor in the four quarters through September in data compiled by Bloomberg, sees a drop to 84 US cents by June 2015. The bank sees a US recovery boosting the greenback against the Aussie, giving the RBA room to raise borrowing costs in the second quarter of next year, said Paul Bloxham, HSBC'S chief Australia economist in Sydney, who used to work at the central bank.

"We've seen the US dollar appreciate and that's putting downward pressure on a range of currencies," Mr Bloxham said on Oct 2. "Now that the Aussie dollar …