Reserve Bank boss Glenn Stevens says he doesn't know when the Australian dollar will come down from its stubborn highs.
Strong foreign investment in the local property and money markets was a major reason the Australian dollar remains at historically high levels, Mr Stevens said.
"When you think about it, the whole universe of yield on offer on all manner of assets in this country is high by the standards of other countries," he said.
A lot of the money coming into the country is chasing the attractive yields offered by property, infrastructure and bonds, most of which the RBA does not control, Mr Stevens said.
"That's a feature of the world we live in, and one of the features of that is a major part of why the exchange rate remains ... above its likely long-run equilibrium value.
"How long it will be the case, I don't know."
After the RBA decided to leave interest rates on hold Tuesday, Mr Stevens said the Australian dollar was above most estimates of its fundamental value, especially given the declines in key commodity prices.
"It is offering less assistance than would normally be expected in achieving balanced growth in the economy," he said in a statement on Tuesday.
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