KEY POINTS:
The New Zealand dollar closed below US74c yesterday after bettering that mark overnight.
In listless trading, it closed on US73.97c from US73.69c on Monday.
Bank of New Zealand currency strategist Danica Hampton said the market had shrugged off Monday's lacklustre labour market data.
The numbers were unequivocally softer than expected, and at the margin appeared to have eased pressure on the Reserve Bank to tighten New Zealand interest rates again, she said.
The kiwi had benefited from a generally weaker US dollar and solid demand from Japanese and Asian investors.
The kiwi closed on 88.65 yen, up from 88.36 yen on Monday.
It was also slightly firmer against the euro but easier against the Australian dollar, buying 0.5432 euros from 0.5418, and A89.12c, from A89.36c. The aussie rose on strong consumer spending data. A surprisingly strong 1.1 per cent rise in March retail sales provided a solid base for economic growth in the first quarter and led investors to expect further growth.
The trade weighted index was at 71.62 this morning from 71.47.
Hampton said the dollar had been weighed down a little by active selling of the kiwi against the aussie.
The US dollar edged lower against major currencies before three central bank meetings that may underscore market expectations for US interest rates to fall this year as rates in other major economies rise.
The Federal Reserve is seen holding benchmark short-term rates at 5.25 per cent today.
The euro closed on US$1.3616, edging near an all-time high above $1.3680.
The European Central Bank is expected to hold rates steady at 3.75 per cent tomorrow but to signal a hike in June.
- NZPA