Media: Currency market analysis of CC impacts

Clinically bleak appraisal of CC impacts by money market investors

"Droughts, flooding and food shortages are consequences that can impact economies, and thus currency prices," said Michael Woolfolk, currency strategist with Bank of New York

At a U.N climate conference in Nairobi this month, Washington reiterated its stance by rejecting pleas from U.N Secretary-General Kofi Annan to cut emissions of greenhouse gases.

Australia is the world's third largest wheat exporter but the drought has seen this year's wheat crop size fall by more than 60 percent to its smallest in 12 years, contributing to wheat prices rising to ten years highs on the Chicago Board of Trade.

The longer term outlook for Australian farming is starting to look bleaker, with a farmer committing suicide every four days, according to beyondblue, an Australian national mental health organization.

Australia's cities are starting to run out of water and every major metropolitan area has imposed restrictions on water use.

The Australian dollar is up 4.6 percent this year against the greenback but largely on the back of rising interest rates, and an economy bolstered by demand from China for it's mineral wealth.
The Canadian dollar may be a better bet longer term, as Canada may be able to supply water to the south western United States which is also starting to suffer from water supply problems.

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