The dollar rose as much as 0.7 per cent against the greenback after Reserve Bank governor Graeme Wheeler backed off from talking down the currency at today's monetary policy review.

"While there's been much hand-wringing over housing prices, is intervention by the Reserve Bank really the answer?" asks David Tripe.

Strong overseas demand for the New Zealand dollar is likely to form a major barrier to attempts by the Reserve Bank to bring it down, say analysts.

The Reserve Bank says its plans for dealing with potential bank collapses are very different from what's being seen in Cyprus.