Foster's Group has indicated that the appreciation of the Australian dollar will "remain a drag on earnings growth".

The world's second-largest wine company said today (31 October) that it expects the high Australian dollar to have a "significant net negative impact" on earnings.

Despite this, Foster's CEO Trevor O'Hoy remained optimistic about the performance of the wine business, adding: "I believe we can continue the strong constant currency performance we saw in the second half of the 2007 financial year."