Oz dollar hits parity with US greenback for first time since floated in 1983

Canberra, Oct 16 (ANI): The Australian dollar has reportedly reached parity with the US dollar for the first time since it was floated in December 1983.

According to News.com.au, the Australian currency reached as high as US1.0003 dollars on Friday night before pulling back to stand at 99.14 US cents shortly after midnight and then easing to 98.84 US cents by the end of the week's trading.

It was the first time since 28 July 1982 that the Australian dollar has traded about one US dollar.

Federal Treasurer Wayne Swan said the milestone reflected the strength of the Australian economy.

"The Government supports a floating currency, which has served our nation well as a shock absorber against global events for more than a quarter of a century," Swan said.

"But we know that there are swings and roundabouts, and while the dollar has beneficial impacts for consumers through cheaper imports, it also makes life tougher for some sectors of our economy such as manufacturing and tourism," he added.

However, David Bloom, HSBC's head of currency strategy in London, told Australians not to go over the moon with the developement.

He said the Australian dollar is "massively overvalued", and achieving par with the greenback is not something to "be celebrated".

"In the old world, a strong currency was a vote of confidence in your economy-in today's world of currency wars, a strong currency means you are losing the battle," he added. (ANI)