SYDNEY: The Australian dollar leapt to a new record high of 1.0197 US dollars Thursday boosted by rallying commodity prices.
The resources-based Aussie has traded near or above parity with the greenback since first breaking through on October 15, having surged about 20 percent since June as Australia experiences a robust mining boom.
Floated in 1982, the Aussie's bullish performance has been buoyed by a slumping US dollar, higher domestic interest rates and a strong economy powered by huge Asian demand for its raw materials.
IG Markets analyst Ben Potter said bullish commodity prices "sent the AUD screaming to a fresh post-float high of 1.0197" on Thursday, adding that it was likely to continue its march.
"While the underlying fundamentals behind the likes of copper and coal are strong indeed, we're starting to see some US dollar weakness, which has the added bonus of further boosting US dollar denominated commodity prices," said Potter.
"It's very difficult to tell how far these prices could run; one thing we do know is that trends in motion tend to stay in motion, and usually for a lot longer than anybody predicted."
Debt concerns in Europe and the United States were also weighing in the Aussie's favour, depressing the US dollar and sending gold and other safe-haven precious metals soaring, he added.
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