THE NEWS WRAP: ASIC to slash 80 jobs in its investigation unit

The Australian dollar is set to hit a new record high of $US1.05 next month, with analysts predicting that the surge could net Australian companies as much as $120 billion a year from overseas investors.

The dollar hit $US1.0294 on Saturday morning Australian time, its highest level since its 1883 float. According to The Australian, the dollar’s strength could lead to strong backing of domestic businesses from foreign investors.

ASIC slashes jobs

Around 80 jobs will be cut at corporate regulator the Australian Securities and Investments Commission, mostly in its investigation unit.

The move, which is a result of the Federal Government’s decision to withhold funding, is a further depletion of ASIC’s resources following the scrapping of the Wickenby tax evasion team.

Coles defends milk war

Supermarket giant Coles has defended its aggressive price war with Woolworths, claiming that it is part of a strategy to improve its reputation.

Bob Every, chairman of Coles owner Wesfarmers, said that the business had no intention of hurting the dairy industry in the wake of its milk price war.

Overnight

The Dow Jones Industrial Average climbed by 50.03 points to 12,220.59. The Australian dollar hit a record 102.94 US cents before dropping back to 102.6 US cents.