Those planning a trip overseas or buying online from overseas should consider making purchases soon or locking-in the good currency exchange rates now.

Most analysts expect the value of the Australian dollar to fall against the United States dollar and the British pound and reduce the Australian dollar’s purchasing power in those countries.

Seize the day: Overnight, the currency fell as low as 92.81 US cents, its weakest level since June 5. Credit:Louie Douvis

The relative interest rates among the major economies are among the most important factors that determine currency exchange rates. Generally, a higher relative interest rate supports a higher currency; though currency exchange rates are notoriously volatile and hard to predict.

One Australian dollar buys about 93 US cents now. In April last year it was buying more than 105 US cents and hit a low of 87 US cents in late January this year. However, just about every analyst expects the Australian dollar to move lower against the greenback and pound.