The Reserve Bank Governor has issued a warning to money markets driving up the value of the New Zealand dollar.
Alan Bollard says speculators who think the Kiwi will continue to rise in tandem with the Australian dollar stand to lose money.
Dr Bollard says the economic pick-up here is much more muted than Australia's, which is benefiting from strong demand from China.
The Reserve Bank of Australia has raised official interest rates twice so far this year.
New Zealand's have remained at a record low and Dr Bollard last week said they would remain there until the second half of next year.
The New Zealand dollar fell a third of a cent soon after the statement to under US72 cents.
This followed earlier falls after Thursday morning's worse-than-expected unemployment figures.
