AUSTRALIAN DOLLAR TO MARK 20TH ANNIVERSARY OF "FLOAT" IN 2003.

SYDNEY, Jan 2 Asia Pulse - It's been an exciting ride for Australia's dollar since it was "floated" 20 years ago.

The local dollar will mark the 20 year anniversary of that float in 2003 as a more narrowly traded currency but one that is worth one third less than its pre-float levels.

When then Treasurer Paul Keating floated the Australian dollar in December 1983 it was trading around 92 US cents.

It is currently hugging 56 US cents after being tested in a volatile and highly speculative environment over the past two decades.

From 96 US cents in March 1984, the currency touched 57 US cents in July 1986 before recovering to hold a 66 to 80 US cents range for most of the subsequent decade.

Macquarie Bank divisional director Geoff Bowmer, working with the Reserve Bank ahead of the float and subsequently with merchant banker Hill Samuel, said at the time there was widespread belief in a "correct" range for the Australian dollar.

"I have often wondered if, they'd been told in 1983 when they were floating the dollar; you are going to have interest rates at 20 per cent (retail) and the currency at 50 US cents over the next 20 years will you still do it?"