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Kirk Demeter explained to the Wall Street Journal that he purchased currency options enabling him to get Australian dollars at low prices in the future to protect himself against falls in the US dollar.
The businessman sells holidays to Australia and purchases hotel bookings, tours and airfare some time after agreeing package prices with US holidaymakers.
Consequently, having the option to purchase Australian dollars for a lower price than they are currently available helps him to maintain profit margins as the US dollar struggles.
"The thinking is we wanted to strike while the iron is hot," he said of his recent forex trading decision.
At the moment, $1 can be exchanged for AU$0.945431, down from the March 15th peak when it was worth AU$1.01592 but up from the August 1st low of AU$0.904683.
Posted by Sara Secker
