Don’t panic – despite the headlines, the Australian dollar isn’t crashing | Greg Jericho

The value of the Australian dollar fell from US$0.637 to $0.623 in four days in the week before Christmas.

A falling Australian dollar will benefit Australian exporters and will be worse for those importing goods.

Australians will feel the impact most notably in petrol prices.

The dollar is lower than it has been for a while, but there is no real sense of a crash.

A 25-basis-point cut in the cash rate will make a negligible difference.

The RBA needs to focus on the domestic economy, rather than the dollar.

The dollar will go down, and up, and some will benefit and others will not, and the RBA should not use it as an excuse not to deliver Australians the necessary relief of a rate cut.