Tony Abbott

Did Prime Minister Tony Abbott’s confusion over economics and the strength of the Australian dollar lead him to mislead Parliament last week, and suggest the Reserve Bank had done a deal with the government to lower the value of the dollar?

The RBA’s continuing efforts to jawbone the dollar down appear to be bearing fruit after Governor Glenn Stevens' latest effort on Friday when he expressed a wish in a newspaper interview for a dollar around 85 US cents. But less than 24 hours earlier, Abbott said something that appeared to suggest there was a trade-off between the RBA's efforts to lower the currency and the still surprising decision by the government to inject $8.8 billion into the RBA to boost its main reserve: