Another of the big four banks now believes the Australian dollar will rise above parity with the American greenback.

Three weeks ago Westpac tipped $US1.01 for the Australian currency by early next year.

Now ANZ has raised its forecast to $US1.04 by the end of this year.

The revised prediction has been prompted by a change of mind on interest rates.

ANZ expects official interest rates to be raised again twice this year, with the first tightening to come in August, in response to worsening inflation figures.

The currency's strength will also be supported by high commodity prices and possibly more cuts to US interest rates.

Last week the dollar rose to its highest level since being floated in 1983, pushing above 96.5 US cents.

At around 7:30am AEST it was sitting at 95.85 US cents.