Expats welcome Aussie dollar's record high against pound Chris Dixon, a British expat based in Melbourne, said: "Although I haven't decided yet where to spend my summer holidays, the fact that the Aussie has hit a high against the pound may influence my decision. London is pretty expensive for a tourist with pricey hotels, restaurants and West End shows so a weak pound would be good news. Foreign traders have also had a preference for Australian dollars because of the higher official interest rates offered compared with the UK, adding to demand for the currency. Australia's central bank's official interest rate stands at 4.25 per cent, compared with just 0.5 per cent offered by the Bank of England. This means overseas investors receive a higher return for their Australian dollar investments than they would their pounds. Currency dealers said British expatriates earning wages in Australian dollars are undoubtedly one of the main beneficiaries of the high exchange rate. However, recipients of sterling-denominated pensions have recently seen the purchasing power Down Under of this income plummet. One currency trader said: "It is hard to see things improving and helping just the Australian dollar to rally, without also improving the eurozone. The global economy is so inter-connected, therefore what's good for one region is likely to have a positive effect on the others.