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Date Published : Monday, December 31, 2007
The Australian dollar will increase to its highest level against US currency since it was floated in 1984, it has been suggested.
Tony Morriss, senior currency strategist for financial group ANZ, predicts that the Australian dollar will reach US96c by June 2008.
Australian Associated Press reports that Mr Morriss believes a number of factors will contribute to this financial phenomenon, which could affect those banking in Australia.
"Domestic demand remains strong [and] commodity prices will hold up and support our terms of trade," Mr Morriss said.
"We expect underlying US dollar weakness to be maintained. I would prefer to couch it in terms saying market expectations would be for a further widening of the interest rate differential."
Over the course of 2007, the Australian dollar has risen against the US dollar - finishing the year at US88.18c, having been at US79c at one stage during the last 12 months.
However, contradicting ANZ's forecast, as well as going against the current pattern of rising value, OzForex manager of corporate business Jim Vrondas predicts the Australian dollar will be at US83.50c by June 2008, which represents a drop of nearly US5c.
"A global slowdown in economic growth is likely to impact on the resources sector mid to late next year," he warned, adding that the currency could be at US80c by the end of the calendar year.
In December, a number of changes to the Australian financial system were announced following Kevin Rudd being elected the country's new prime minister.
One major development saw the Department of Finance and Administration change its name to the Department of Finance and Deregulation.
Australia's savings accounts compared and reviewed.
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