Reserve Bank Governor Alan Bollard admits it appears there is little he can do to rein in the New Zealand dollar.
The dollar is at its highest level for 13 months. It broke through the 70 US cent mark on Thursday night, pushed up by offshore trading.
Dr Bollard says the current situation is undesirable and not the conditions he would like to see there for a rebalancing of the New Zealand economy.
He said the Reserve Bank thinks the dollar will be stuck in this mode while Wall Street markets go through what they call a "risk appetite driven change in mood and change in portfolio balancing".
On Thursday Dr Bollard held the Official Cash Rate at 2.5%.
