Soaring dollar leads to run on greenbacks

THE soaring dollar has reportedly led to a rush for US dollars at foreign exchange companies.

The dollar continues to climb against the US dollar / File

THE soaring dollar has led to a rush for US dollars at foreign exchange companies, a report says.

A currency exchange company Travel Money told theage.com.au it had experienced a shortage of US dollars earlier this week.

A staff member said that "the last weeks have definitely been the busiest consecutive days we've ever experienced".

Travellers were urged to get in early to ensure they are able to get whatever US dollars they need.

The dollar clawed its way to a 26-month high overnight before pulling back this morning and has risen more than 17 per cent since May.

At 12pm (AEST), the "Aussie" was at 95.63 US cents, down fractionally from yesterday's local close of 95.64 cents

It reached 96 US cents in offshore trade, its highest since it touched 97.92 US cents on July 25 2008.

The website said that larger currency exchange companies reported they had sufficient supplies of US dollars.

But some smaller companies had found themselves caught short. 

The dollar has surged this week after the US Federal Reserve suggested it might print more US dollars to stimulate the American economy.

The increased supply of money tends to cheapen its price relative to other currencies. The tactic has been used as part of the US response to the global financial crisis.

- with AAP