Analysts at a global investment bank are tipping the Australian dollar could return to parity with the greenback by the end of this year.
The dollar reached a four week high of 93.86 US cents overnight, extending last week’s rally after the European Central Bank announced more measures to boost the region’s economy by further cutting interest rates.
Morgan Stanley currency strategists say they have now boosted their forecasts for the dollar as overseas investors increasingly buy up Australian bonds in the hunt for higher returns.