The New Zealand dollar's spike up overnight above US61.50c proved shortlived as selling resumed in dayside trading.
The kiwi finished the local session on US61.18c, little changed from yesterday's 5pm local close of US61.13c.
The spike to US61.50c followed a small issue of uridashi - bonds issued in Japan but denominated in New Zealand dollars - which ignited buying momentum before strategic sellers reversed the rise.
ANZ Investment Bank said the kiwi had struggled to surmount selling interests above US61.20c.
The kiwi opened stronger against the Australian dollar at A81.78c but ended back near yesterday's close on A81.45c.
ANZ economists forecast the kiwi, which has already lost 12 per cent versus the aussie this year, will fall to A75c next year while Westpac is even more pessimistic with a A72c forecast.
The Australian dollar eased to US74.93c from US75.13c here yesterday.
There was no support from the New Zealand Institute of Economic Research's quarterly survey of business opinion, which showed business confidence mired at levels seen in the Asian financial crisis of the late 1990s.
Citigroup economic and market analysis director Annette Beacher said the acceleration of costs and selling prices were a "real red flag" for the Reserve Bank and would extend the time it took before the bank could think about easing.
The trade-weighted index ended on 61.26 from 61.07.
In major currency trading, the yen crawled back towards a one-month high against the US dollar, buoyed as the Bank of Japan appears set to raise interest rates this week for the first time in six years.
The BOJ is widely seen raising rates to 0.25 per cent from virtually zero, but many market players are unsure whether the yen will benefit much because rates in Japan are likely to remain well below those in the United States and the euro zone.
Rates:
5pm today 5pm Monday
NZ dlr US61.18c US61.13c
NZ dlr/Aust dlr A81.45c A81.37c
NZ dlr/euro 0.4803 0.4777
NZ dlr/yen 69.81 69.48
NZ dlr/stg 33.18p 33.05p
NZ TWI 61.26 61.07
Australian dollar US74.93c US75.13c
Euro/US dollar US1.2740 US1.2887
US dollar/yen 114.05 113.62
- NZPA
<i>Currency:</i> Dollar spike up proves shortlived
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