The Australian dollar hit a three-week high after the Reserve Bank of Australia signalled there won't be any movements in the cash rate for the foreseeable future.
At 1700 AEDT on Tuesday, the local unit was trading at 88.67 US cents, up from 87.48 cents on Monday.
After the RBA's announcement the currency rose more than one US cent, to a peak of 88.94 US cents, its highest level since January 16.
As expected, the RBA kept the cash rate unchanged at a record low of 2.5 per cent at its first board meeting of the year, citing improvements in the local and global economies.
In the latter half of 2013, Mr Stevens on several occasions said the Australian dollar was uncomfortably high, adding that he was prepared to take action to push the currency lower to help growth.
However, in recent weeks the Australian dollar has stayed below 90 US cents, reducing the need for further cash rate cuts.
"The exchange rate has declined further, which, if sustained, will assist in achieving balanced growth in the economy," Mr Stevens said.
Westpac senior currency strategist Sean Callow said the likelihood of no more rate cuts helped boost the Australian dollar.
"The RBA statement was a clear positive for the Australian dollar, effectively adopting a neutral bias on the cash rate and dropping the references to a further decline being needed," he said.
"Most notably on the rates outlook, the concluding paragraph was changed from a bland promise to continue to assess the outlook and adjust policy as needed to a view that there is likely to be a period of stability in interest rates.
"The RBA took some risk in changing its commentary on Australian dollar after many months of talking down the currency."