Australian dollar strong against the euro

Economic analysts predict that European holidays look set to become more affordable thanks to the Australian dollar trading at near decade highs against the euro.

According to experts, the dollar will hit 0.70 against the euro in time for the European summer, helped by Greece’s recent debt trouble and rising local interest rates.

John Kyriakopoulous, head of currency strategy at National Australia Bank, said: "Our economy is much stronger and is doing much better than Europe and that's reflected in interest rates rising whereas they are still obviously very low in Europe."

It has also been predicted that holidays to the United States could become cheaper by the end of the year too, with the Australian dollar getting 93 US cents.

Australians planning on taking advantage of the weak euro are strongly advised to take out comprehensive travel insurance cover.