Buoyed by strong commodity prices, a strong economy and comparatively high interest rates, the $A soared throughout 2007-08, reaching over US96¢ in May and June – the highest since March 1984, and up 80pc since 2001.

The financial year 2007-08 saw the $A average 14pc higher against the $US, at US89.7¢ – the second largest fiscal year increase after 2002-03 (up 22pc).

A surging US domestic beef market resulted in an 8pc increase in Australian beef export prices to the US for 90CL manufacturing beef at US137.4¢/lb CIF in 2007-08.

However, in $A terms the increase was reversed, with 90CL beef prices averaging 6pc below that of the previous year, at 308.2¢/kg FAS – the lowest fiscal year average for the past four years.

The $A also averaged 6pc higher against the Japanese yen during 2007-08, at 98.7 yen, putting further pressure on Australian beef export returns.

Adding to the impact of the higher $A, was a sluggish Japanese economy and demand, and the return of US beef to the market, which made it increasingly difficult for the higher Australian beef prices to be passed through to end consumers.

Chilled grassfed fullset prices averaged 7pc lower in 2007-08, at 527A¢/kg FOB.

Significant increases for the fiscal year were also recorded against other Asian currencies, including the Korean won (16pc), Indonesian rupiah (16pc), the Hong Kong dollar (14pc), Taiwan dollar (10pc) and the Singapore dollar (6pc).

However, the $A did not rise substantially against all currencies in 2007-08, with the $A only averaging 1pc higher against the European currency, at 61 euros and 2pc higher against both the New Zealand dollar and Canadian dollar.

Significantly, the $A fell a further 3pc against the Brazilian real, bringing the fall to almost 20pc over the past four years.