Aussie dollar slumps below 95 us cents over the past twelve months, with inflation being the primary driver. We have used the Australian dollar exchange rate to measure the impact of inflation on the Australian dollar exchange rate since 2013, and since 2010 it has dropped by approximately 2.5% (see Figure 2). Figure 2: Australian dollar value of currency, since 2013 This downward trend in exchange rate was driven by negative interest rates with negative nominal exchange rates. In 2013…