9 Oct 2010

Australian dollar tipped to overtake US dollar

7:39 am on 9 October 2010

Westpac expects the Australian dollar to overtake the US dollar by the end of the year after the Australian currency reached a record 99.2 US cents on Thursday night.

The dollar later pulled back and was buying 98.05 US cents at 11:50am (AEDT) on Friday.

Westpac says the weakening US dollar, coupled with the prospect of a quantitative easing programme by the US Federal Reserve will see the Australian dollar's appeal rise.

The ABC reports this is expected to push the Australian currency beyond parity against the greenback by the end of the year.