THE dollar hit a 28-year high after stronger than expected inflation figures raised expectations of an interest rate rise.
At 5pm (AEST), it was trading at 110.55 US cents, adding more than one US cent from 109.31 US cents today.
Since 7am (AEST) today, the local unit traded between 109.43 US cents and 110.62 cents, the highest level since the currency was floated in December 1983.
The previous post-float high was 110.11 cents on May 3.
The consumer price index (CPI) rose 0.9 per cent in the June quarter, for an annual inflation rate of 3.6 per cent, the Australian Bureau of Statistics (ABS) reported today.
The annual rate of inflation of 3.6 per cent for the June quarter of was the fastest pace since late 2008 and higher than economists expected and outside the central bank's target band of two to three per cent.
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