The New Zealand dollar eased during the day after a jump of more than one US cent took the currency to US70.72c earlier.
The TWI, which measures the currency against those of New Zealand's five main trading partners, also settled back a little, having peaked at a post float high of 73.0.
Around 5pm the kiwi was worth US70.21c, while the TWI was at 72.78. The New Zealand dollar was keeping up its pressure on the A95c level, being little changed from yesterday at A94.92.
The kiwi was unable to maintain the earlier run through strong resistance at $0.7050, its 200-day moving average.
ANZ Investment Bank senior dealer Mark Elliott said the New Zealand dollar had made "pretty significant moves," reaching multi-year highs against the yen and the Australian dollar.
"It was a very strong move up overnight. The kiwi ran up over 100 points, but it was basically a broad US dollar move. It wasn't anything kiwi specific," he said.
"The US dollar has had a similar fall against euro, aussie, sterling, yen, the whole shooting match."
The strength of the New Zealand dollar against other currencies was a trend that had been in play for quite a while, Mr Elliott said.
It could be explained by the fact the New Zealand dollar was yielding much higher than other currencies in the OECD, he said.
"It's just a straight yield play that'll explain those cross rate moves."
The sharp fall in the US dollar came on expectations of an interest rate increase from the European Central Bank at Thursday, and weak US housing data.
Rates:
5pm today 5pm Monday
NZ dlr/US dlr US70.21 US69.60
NZ dlr/Aust dlr A94.92 A94.94c
NZ dlr/euro 0.5942 0.5954
NZ dlr/yen 83.72 83.41
NZ dlr/stg 40.75 40.69p
NZ TWI 72.78 72.49
Australian dollar US73.96c US73.31c
Euro/US dollar US1.1815 US1.1691
US dollar/yen 119.28 119.84
- NZPA
<EM>Currency:</EM> Dollar eases after TWI hits post float high
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