THE Australian dollar surged to a post-float record yesterday, smashing through US103¢ as European markets opened last night to notch up its highest level since deregulation in 1983.
After flirting with the number all afternoon, it breached the previous record of US102.94¢, set late offshore on Friday, to hit a high of US103.15¢.
Analysts predict it could chase down US105¢ within months.
The recent surge caps a remarkable turnaround since the dollar's 2008 nadir, when it tumbled 39 per cent in three months to slump to US60¢ in August of that year.
Since then it has recovered more than 43¢, largely inspired by the Chinese-led mining boom and quick economic recovery.
Tim Waterer, a senior foreign exchange dealer at CMC Markets, tipped the dollar would continue to improve in the coming months, with few signs US rates will be lifted.
"[It seems] the yield advantage that the Australian dollar enjoys over the US dollar is in no danger of diminishing any time soon."
''US105¢ is the price I'd have in mind in the next three months. I can see it pushing higher from here."
