Bernama reported that Australian federal Treasurer Mr Wayne Swan has ruled out any government intervention in the currency market, despite a high Australian dollar having an adverse impact on trade exposed industries.

The strength of the Australian dollar, which remains comfortably above parity against the US currency, was a key factor behind BlueScope Steel's announcement that it would end its export business and axe 1000 jobs.

However, Mr Swan said that the government stood by a market-based exchange rate as it was a reflection of the local economy. He added that "We are committed to a floating Australian dollar."

The comment came as the Japanese government has flagged further government intervention in foreign exchange markets, as Tokyo remains concerned about the yen's appreciation.

BlueScope Steel's announcement came after Australian airline Qantas' announcement that it will cut 1,000 jobs, with OneSteel also confirming last week the loss of 400 jobs due to the high dollar and weakened export demand.

(Sourced from www.bernama.com)