The ANZ sees a bigger correction against the euro, with the Australian dollar diving to 71 euro cents by the end of the year.
The ANZ sees a bigger correction against the euro, with the Australian dollar diving to 71 euro cents by the end of the year. Kaiser Nelson

Has the dollar hit its peak?

For Australians pondering a holiday in Europe or snapping up a cheap Gucci handbag online, now might be the time to act, currency analysts say.

That's because the Aussie dollar's record run against the euro might be near its peak. It may also ease back to parity against the US dollar by the year's end, even as it trades near a two-month high against the greenback.

"The current move is probably a little bit overdone," said National Australia Bank forex strategist Emma Lawson.
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NAB predicts the dollar will retreat from its record 81.2 euro-cent level reached overnight to 74 euro cents by the end of the year. Against the pound, though, the dollar may hold to its current levels of just over 67 pence by end-2012, not far from a 27-year high, NAB says.

The ANZ sees a bigger correction against the euro, with the Australian dollar diving to 71 euro cents by the end of the year. Westpac, though, reckons the Aussie will still be worth about 80 euro cents.

Read more at Brisbanetimes.com.au
 


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