The Australian dollar could find long term relief from cyclical downturns if the country’s government decides to take climate change seriously, according to ABN Amro Bank NV. The Dutch bank expects the country’s focus to turn toward environmental policies after wildfires wreak havoc on the economy and hurt the currency. A switch to a greener economy could alter the fundamental performance of the Aussie, making it less driven by global risk sentiment, says its senior foreign-exchange strategist Georgette Boele. “The character of the Australian dollar could change if the government makes climate policy and reaching the Paris Agreement more of a priority,” she said in a note to clients.

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