The Australian dollar has jumped to a three week high – hitting 77 US cents after a surprise move by the Organisation of the Petroleum Exporting Countries (OPEC) lifted the price of oil on Thursday.

The dollar has been hovering just under the 77 cent mark all week, but breached the barrier after OPEC announced it might begin to limit its oil output by as much as 2.2 per cent.

The change, which could equates to as much as 700,000 fewer barrels of oil per day, caused oil prices to surge by six per cent, and was met with confidence by investors.

The Australian share market has also been bolstered by a belief that the Reserve Bank of Australia will keep interest rates as they are for the time being, as well as a surge in commodities prices.