The Australian dollar may have retreated from historic highs against the greenback, but that hasn't stopped it from notching new records against other major world currencies.

The British pound has lost its dominance over the Australian dollar over the last four years, with the local unit setting a 28-year record against the pound overnight, as the UK economy struggles with poor growth and high levels of debt. It has also reached a four-and-a-half year high against the Japanese yen.

Rising dollar ... as the yen and pound crumble, the local currency gains traction. Illustration Karl Hilzinger

Although the dollar has eased from its high of $US1.0652 against the US dollar, set last September, to $US1.0268, as the US economy begins to show signs of recovery.

The records against the pound and the yen signal both the strengthening of the Australian dollar, which has benefited from a once-in-a-generation mining boom, and the faltering of traditionally strong economies.