finance
ASX 200 at 8806 drags on Tasmanian super as stronger dollar hits farm gate returns
Local agriculture and tourism operators face margin pressure from the 0.26 per cent rise in the Australian dollar while retiree portfolios absorb the 0.43 per cent fall in the benchmark index.
How we reported this
The ASX 200 finished at 8806, down 0.43 per cent, after a session in which the S&P 500 climbed 1.23 per cent to 7575 and the Nasdaq Composite added 1.74 per cent. Tasmanian superannuation accounts, typically weighted toward domestic equities and fixed interest, recorded corresponding declines that will appear in the next quarterly statements mailed to members in the north and south of the state.
The Australian dollar lifted to 0.6955, a 0.26 per cent gain on the session. Exporters of cherries, abalone and premium beef from the Tamar Valley and Circular Head now receive fewer US dollars per tonne shipped, squeezing margins already narrowed by higher domestic freight costs to Melbourne and Sydney ports.
WTI crude rose 4.17 per cent to 71.41 dollars a barrel. Higher oil prices lift the operating cost of diesel-powered fishing vessels and tourist coaches on the east coast, yet they simultaneously improve the relative economics of Tasmania’s existing hydro and wind assets when power purchase agreements come up for renewal later this year.
Commodity and currency effects on island operators
Gold slipped 1.00 per cent to 4114 dollars an ounce. The move had negligible direct impact on local balance sheets, though several north-west councils hold small bullion allocations inside their long-term investment reserves and will mark those holdings to the lower price at month end.
Bitcoin traded at 64035 dollars, up 2.85 per cent. The gain is largely irrelevant to the conservative portfolios held by most Tasmanian retirees, whose advisers continue to limit cryptocurrency exposure to less than 1 per cent of total funds under management.
With the All Ordinaries also 0.49 per cent lower at 9004, listed Tasmanian-exposed companies in the food processing and tourism sectors opened the week under selling pressure. Fund managers in Hobart noted that any sustained period above 0.70 on the Australian dollar would prompt fresh reviews of forward currency hedges before the spring export season.
This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.