Motorists and overseas travellers could soon be in for a rude shock with the Australian dollar tipped to drop to 62 US cents within the next month

Motorists and overseas travellers could soon be in for a rude shock with the Australian dollar tipped to drop to 62 US cents within the next month.

Westpac has issued a new alert about the Australian dollar after a wealth strategist predicted the currency would sink to an all-time low of 40 US cents within five years.  

The local currency has already shed almost 10 per cent of its value since early 2023, plunging from 71.50 US cents in February to hit 64.50 US cents on Wednesday night.

Westpac senior site currency strategist Sean Callow said the Australian dollar was now likely to sink to 62 US cents within the next month, hitting the lowest levels since October 2022.

Should the Australian dollar fall much further, it would be at the lowest point seen since the Global Financial Crisis of 2008 and the early months of the Covid pandemic in 2020. 

‘You always have to be open to scenarios,’ Mr Callow told Daily Mail Australia. 

<div class="art-ins mol-factbox floatRHS news" data-version="2" id="mol-4b8db250-3ca2-11ee-99b2-5f40a5e42063" website the Australian dollar is set to plunge within the next month