in your example file set the Priority of the Hair object to Generators 401
From the Help Dynamics/Tips and Tricks: “Internally, the MoGraph Dynamics’ Priority is fixed to Generators/400. Normally, this is a value that you will not have to change. If, for example, Dynamics should affect other areas (e.g., HAIR) the priorities will have to be modified (i.e. those for HAIR):
If objects moved by Dynamics should in turn affect HAIR the Priority must be set to 401.”