One of Australia's biggest banks is predicting the Australian dollar will climb above $1US for the first time since its float in 1983.
Westpac is tipping it will reach $US1.01 by March 2009.
Westpac's chief economist Bill Evans says continued weakness in the greenback will be the main force driving the Australian dollar higher.
The bank is the first of the big four to make such a forecast, but Mr Evans says it is not such a bold move.
"Whilst the psychology of going to parity is a huge thing for Australia, the momentum and the fact that we're already around 94, 95 cents makes it less bold than some may argue," he says.
A high dollar makes Australian exports more expensive for overseas buyers.
But Mr Evans says the forecast rise will not leave exporters any worse off than they already are.
"Let's think about it: over the last five years the currency, the Aussie dollar, has risen on average 12 per cent per year, so the additional 6 or 7 per cent I see happening this year certainly won't be creating the problems that we've seen for those sorts of exporters over the last few years," he said.
