RBA governor Glenn Stevens says Australian dollar will be 'materially lower' Reserve Bank governor Glenn Stevens has warned the dollar will be lower in future. RESERVE Bank of Australia governor Glenn Stevens says the Australian dollar is still high and has warned investors that it will eventually fall. "These levels of the exchange rate are not supported by Australia's relative levels of costs and productivity," he told a Citi Group investment conference in Sydney on Tuesday. Moreover, the terms of trade are likely to fall, not rise, from here. So it seems quite likely that at some point in the future the Australian dollar will be materially lower than it is today. The Australian dollar stayed above parity with the US dollar for most of the time between 2011 and May this year. The currency was supported by a combination of record high commodity prices, the safe haven appeal for Australian bonds and relatively high interest rates. However commodity prices are steadily falling, the RBA's cash rate has been cut by two per cent since 2011 and the Federal Reserve is expected to taper its bond purchase program next year. Mr Stevens said a lower exchange rate will help the Australian economy move away from one mainly reliant on mining investment. Areas' such as retail spending, local tourism and manufacturing have suffered from the high Aussie dollar. "Another part of the balanced growth path would involve an expansion in some of the trade-exposed sectors that have been squeezed by the high exchange rate," the RBA governor said.