The New Zealand dollar held at lower levels after its sudden decline yesterday following Reserve Bank assistant governor John McDermott's comments ruling out interest rate rises.
The kiwi was at 75.90 US cents at 8am in Wellington, from 75.81 cents at 5pm yesterday and 76.23 cents before McDermott's comments in a speech yesterday.
The trade-weighted index, the broader measure of the currency favoured by the Reserve Bank, was at 79.05 from 79.14 yesterday, retreating from a nine-month high of 80.53 earlier this week.
The New Zealand dollar dropped yesterday after McDermott told a business lunch in Hamilton that the Reserve Bank isn't considering an increase in interest rates at present and is watching for any signs of weakening demand and domestic inflationary pressures that could warrant a rate cut.
That contrasts with previous Reserve Bank comments that future interest rate moves could be "either up or down", and prompted traders to take a more dovish stance ahead of next week's official cash rate review.