5:30 PM DOLLAR UPDATE: US 40.20c
The Governor of the Reserve Bank, Don Brash, is calling for cool heads and rational thinking on the low New Zealand dollar.
Dr Brash has told an Auckland business audience that there is no single reason for the decline in the kiwi.
He says the strong US dollar is certainly a factor, but it is not the only one.
The Governor has repeated his warning against upward pressure on wages to combat increasing prices caused by more expensive imports.
He says that would cause a secondary round of inflation which the Reserve Bank would have to deal with by raising interest rates.
Dr Brash says there is no quick, easy solution to the low dollar, but he believes that over the long term it will strengthen.
- IRN
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Brash calls for calm over falling dollar
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