THE Australian dollar is higher after a comment from Reserve Bank governor Glenn Stevens that caused the local currency to fall to a three-year low was dismissed as a lighthearted remark.
At 5pm today, the local unit was trading at 91.06 US cents, up from 90.62 cents on yesterday's close.
Mr Stevens told a business function yesterday that the RBA had deliberated for "a very long time" before deciding to leave the cash rate at its record low of 2.75 per cent on Tuesday.
The unscripted comment sent the Australian dollar below 91 US cents and to its lowest level since September 2010.
But RBA deputy governor Philip Lowe said today that the comment was a lighthearted remark that was "misinterpreted" by financial markets.
"I can confirm for you that the board did deliberate for a very long time," Dr Lowe said.
"I can also confirm for you that it always deliberates for a very long time."
