The Australian dollar has reached a new 29-year high against the greenback, passing 103 US cents.

The dollar gained over 0.5 per cent on Monday to hit its highest level since March 1982, more than a year before the currency was floated.

The previous record was set early Saturday morning when the dollar hit 102.94 US cents.

Earlier this evening it was also buying 64 British pence, 73 euro cents and 84 Japanese yen.

In recent weeks the Australian dollar has received a boost from rising commodity prices and easing fears of a nuclear meltdown in Japan.

The currency has proven resilient against the shocks of the Japanese earthquake and tsunami and the civil war in Libya.

The dollar fell below 97.5 US cents for the first time in four months on March 17, but quickly recovered to its current levels.

CMC Markets foreign exchange dealer Tim Waterer says rising gold and oil prices are also adding support to the local dollar and currency traders are uncertain where the short-term top could be for these commodities.

"That's certainly driving the Australian dollar higher," he said.

"There does seem to be a lot of upside to the gold and oil prices and that will lend support to the Australian dollar."

AMP Capital Investors chief economist Shane Oliver says the dollar could rise further as commodity prices stay strong.

"I think ultimately it will go higher and maybe to $US1.10 by year end," Dr Oliver said.

- ABC/AAP