The Reserve Bank governor is confident the Australian dollar will fall and that there's no need to intervene just yet to push it lower.
The RBA has said on numerous occasions that the high value of the Aussie is a drag on the economy and has indicated it should be below 90 US cents.
However it hasn't been at that level since March.
RBA governor Glenn Stevens told a parliamentary committee on Wednesday that he doesn't know what will spark a sustained fall in the Aussie but says most factors suggest should go lower.
"It's going to be pretty surprising if it remains this high over a very long period," Mr Stevens said in Brisbane.
"It will remain my view that the risk that it will go down is underappreciated."
Mr Stevens was asked if he is ready to intervene to push the currency lower by selling Australian dollars.
"I've said in the past that it is a remaining part of the tool kit, if it was useful," he said.
One obstacle to the RBA intervening to push the Aussie dollar lower is the continued foreign demand for the currency.
"There has a big wall of money coming in, and you'd have to be prudent in thinking how effectively you'd be able to stand against that," Mr Stevens said.
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