However they can hedge these investments which often sees them enter the market as buyers of forwards contracts and options. This group's influence changes depending on their interest in Australian asset markets. Australia gets substantial allocations of global capital which drives up the value of the Australian Dollar. However when they wish to hedge existing investments in Australia this can generate selling flows. Firstly the RBA will intervene to buy or sell Australian Dollars if they believe it is substantially under or overvalued and that it is having a negative effect on the economy.
Many government agencies have foreign exchange risk either as exporters, importers or borrowers.