THE Reserve Bank says the stubbornly high Australian dollar may be inflicting more pain than its economic models had suggested, with the currency posing ''important risks'' to the economy.

Facing calls to intervene in foreign exchange markets, the central bank said yesterday the global rush to safe assets had inflated the currency, causing it to buck long-running trends.

The dollar has risen by US10 cents since June. Credit:Greg Wood

It also said the wave of resource investment was likely to peak earlier than expected, as companies became more cautious about the global economy's health.

Despite weaker growth in China and falling commodity prices - which are normally a drag on the currency - the dollar has risen by US10¢ since June. This week it hit a four-month high above US106¢.