THE Australian dollar could reach parity against the US dollar and is expected to strike US90 cents in the short term, which could avert an interest rate rise.
Craig James, chief economist with CommSec, said today the dollar was expected to reach US90 cents in the near term. After that, the currency could hit $US1, giving Australians who are travelling abroad a big financial boost.
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"we expect to see the Australian dollar will reach US90 cents and after that, we will have to see," he told ABC Radio.
"But we could see the Australian dollar up in the high US90s and perhaps at parity," he said.
Indeed, other analysts are predicting parity could be reached with a continued decline in the UD dollar.