The Australian dollar has climbed to its highest level in 10 years, trading at 80.11 US cents at 11am AEDT.
BT Financial Group chief economist Chris Caton says investors are responding to weakness in the US dollar and comments made by the assistant governor of the Reserve Bank of Australia (RBA) on Friday.
"The comments of the RBA assistant governor last Friday have increased the probability in people's minds that interest rates are going up here," he said.
