Henry's comments yesterday about Governor-General Sir Anand Satyanand have drawn rebukes and criticism from the Race Relations Commissioner, politicians, ethnic and community organisations and thousands of people who have posted comments on websites.
TVNZ has suspended Henry without pay until October 18 following the comments.
Henry asked Prime Minister John Key whether Sir Anand, who was born and raised in New Zealand by his Fijian Indian parents, was "even a New Zealander?"
"Are you going to choose a New Zealander who looks and sounds like a New Zealander this time... Are we going to go for someone who is more like a New Zealander this time?"
Today Sir Anand, who is in India for the Commonwealth Games, told 3News he had seen media coverage of the Henry comments "and it seems to be running its course".
He said he had not seen Henry's apology.
"I've seen news reports that he has (apologised). If he has, that's fine"
Meanwhile, the Prime Minister told a media conference today TVNZ had taken the right course of action by suspending Henry.
"It's all about sending the message, and they've (TVNZ) sent the message. The other side of the coin is they expect Paul Henry to be controversial, but there's obviously a line and he's over that line.
"What I said yesterday was it's up to TVNZ and the Broadcasting Standards Authority to make a call on what is an appropriate course of action. At the end of the day it is for TVNZ to determine what is appropriate for their staff and what is not appropriate," Radio New Zealand reported.
About 40 vocal protesters gathered outside TVNZ's headquarters in Auckland today holding signs saying "sack the racist bigot", chanting "shame on TVNZ" and "show him the door".
Unite Union organiser Joe Carolan said it was the first time he had been involved in a protest calling for a worker to be sacked, but it was "simply intolerable" that Mr Henry could insult someone like he had and only receive a two week suspension.
"The real tragedy about this is how many of our kids are going to be bullied over the next few weeks and months in the playgrounds being told you're not a real kiwi. That's where this kind of 'joking' ends up - real people getting bullied, real people being insulted," he said.
The union's national director Mike Treen said for someone on Mr Henry's salary, two weeks without pay meant very little.
"What they (TVNZ) are saying for what is effectively a small fine, we are just going to let him keep going."
Racism, bigotry and prejudice were real problems in New Zealand and comments like Mr Henry's made everyone's job more difficult, Mr Treen said.
Mr Treen said the Prime Minister should stop appearing on Breakfast and called for the programme's sponsor, supermarket company Progressive Enterprises, to withdraw its funding.
His comments were echoed by Wigram MP Jim Anderton, leader of the Progressive Party.
"If his (Henry's) question was an ingenuous one then obviously he has a very narrow view, to put it mildly, about what it is that characterises a New Zealander. I wonder, in that case, what he is doing as a current affairs interviewer on TVNZ," he said.
"If, on the other hand, he was cynically seeking to stir up a storm - which I believe was more likely the case - then he similarly has no place in quality journalism or broadcasting."
Meanwhile, TVNZ reported tonight that Mr Henry's remarks had generated a record 600 complaints with the state broadcaster, and had made headline news in India.
On Facebook, a page called "I am boycotting TVNZ until they sack Paul Henry" has 1180 likes, and the **** You Paul Henry Group, set up in 2007, has 1250 members.
The Bring Back Paul Henry Now page has 690 likes.
