Dollar reaches new post-float record

THE dollar has hit a fresh post-float high, following healthy local terms of trade figures released during this morning.

THE dollar has hit a fresh post-float high, following healthy local terms of trade figures released during this morning.

At 11.50am (AEST) today, the local unit reached US105.85c, its highest level since it was floated in December 1983.

It has since lost around US0.1c.

The local unit opened the day in positive territory following renewed appetite for risk and again given a boost at 11.30am following news of strong export prices.

The Australian Bureau of Statistics (ABS) reported that its import price index had risen 1.4 per cent in the March quarter, while its index for export prices climbed 5.2 per cent.

"Obviously, the terms of trade story is one of the fundamental stories for the Australian economic outlook," St George chief economist Besa Deda said.

The terms of trade measures the ratio of export prices to import prices.

"One of the growth engines of the Australian economic outlook is the private capex upswing and that is showing up also in the terms of trade."