The New Zealand dollar fell, approaching 80 US cents for the first time since late July, after the Federal Reserve's Beige Book said the US economy is expanding "gradually" and second-quarter economic growth figures were revised up.
The kiwi dollar fell to 80.01US cents from 80.42 cents at 5pm in Wellington yesterday.
The trade-weighted index fell to 71.99 from 72.26.
US gross domestic product for the second quarter was revised up to a 1.7 per cent annual pace from an initial estimate of 1.5 per cent, according to the Commerce Department, while an index of pending home resales climbed at more than twice the forecast pace.
The Fed's Beige Book regional business survey pointed to increased home sales and retail sales in saying the world's biggest economy is growing. The data casts doubt on the Fed's willingness to embark on a further round of stimulus.
"In reality QE3 is not a done deal," said Alex Sinton, senior dealer at ANZ New Zealand. "A lot of the strength of Asian currencies has been around QE3." The kiwi "led the way lower" overnight.