A warning over the inflated value of the New Zealand dollar fell on deaf ears on Tuesday as the currency staged a recovery after recent falls.

Winston Peters, New Zealand’s foreign minister, said the kiwi dollar, which has fallen more than 6 per cent against the dollar in the past week, could fall a further 27 per cent. “It has another 27 per cent to go,” he said. “It’s massively over-inflated. It’s of enormous cost to an export-geared nation.”