WELLINGTON -(Dow Jones)- New Zealand Prime Minister John Key said Monday that he wouldn't support the Reserve Bank Of New Zealand intervening in the currency market, even though he sees the New Zealand dollar as overvalued.

"I don't believe in intervention, I never have and, frankly, I never will," Key said at a press conference.

The New Zealand dollar fell last week after Key was reported to have said the government was looking at ways to moderate the currency.

Key said the New Zealand government would continue to keep its spending under control to reduce the work of the central bank.

"Dreaming that we can somehow get the exchange rate under control through intervention is la-la-land stuff," he said.

He added that a high New Zealand dollar wasn't all bad as it did keep inflation under control and therefore reduced pressure on the RBNZ.

-By Lucy Craymer, Dow Jones Newswires; +64-4-471-5990; lucy.craymer@dowjones.com