Finance Minister Bill English has indicated that he believes that the New Zealand dollar is still overvalued a little against the US currencies.

He noted that the valuation of the New Zealand Dollar is influenced by the expectations of monetary policy in the US. The national currency has fallen 4 per cent since Federal Reserve chairman Ben Bernanke indicated that the US will start pulling back stimulus packages for the world's largest economy. The New Zealand has been trading at 77.34 US cents.

Mr English said, The kiwi is "probably still a bit overvalued. This is the kind of adjustment we have been expecting for some time but it has probably taken longer for the US economy to get back in reasonable shape."

He did not provide what he believes would be fair value for the currency saying that it depends upon the international models. He said that the trends suggested that the currency was 10 to 20 per cent overvalued when it was trading at low 80 US cent range. He also expressed surplice over market volatility following the Fed's comments about the stimulus package in the US.