Australia's largest music retailer, Australian Music Group has announced its decision to shut down its Allans Billy Hyde stores situated in the central business districts and other parts of major Australian cities.

Experts say that the main reason behind the closure is the valuation of the country's currency. It is not much cheaper to purchase musical instruments and equipment online instead of physical stores situated in the country. AMG had been working to find a buyer for its business but it did not find interested buyers and thus it will have to close down in November.

The iconic retail store was established when Joseph Wilkie, John Webster and George Allan opened a music retail store on Collins Street, which later emerged as one of Melbourne's best-known streets. The store later moved into a larger store next door that also included a grand saloon for musical performances and teaching rooms.

The Australian Dollar has been trading above the American Currency in 2012 manly due to strong demand for AAA-rated sovereign bond in the international markets. The currency was trading at US$1.0310 on Wednesday, which is its highest level in two weeks.

The powerful currency is allowing more Australians to travel abroad and make purchases from other countries either physically or through the internet. This has made the market situation very difficult for the retail stores in the country.