Greek woes boost aussie to 13-year high

The fallout from Greece's debt woes has helped propel the Australian dollar to a 13-year high against the euro, experts say.

However, they also say that while the Australian dollar has become a proxy for the China growth story, the Greek crisis could spark another global financial meltdown.

The Australian dollar reached 67.15 cents on Friday.

Currency traders are being left with little choice but to buy the Australian dollar because of the weak euro and lacklustre United States and Japanese economies, says Roger Tooze, professor of global political economy at City University, London.

Australia's strong economy and close ties to China are attracting investors, he says.

"A lot of people are putting money into Australia and the aussie dollar as a sort of proxy for China.

"What you get is you're investing in China through Australia where there are legal structures to protect you, structures you don't have in China."

National Australia Bank head of currency strategy, John Kyriakopoulos, said that while the crisis in Greece was undermining the euro, neighbouring European economies could also come under pressure.

"You have to be careful because if you see a spreading of the debt crisis to somewhere like Spain, it could really shake the financial system," he said.

The economies of Portugal, Ireland, Greece and Spain are at risk of being dragged down by any collapse in the Greek economy.

- AAP