KEY POINTS:
The New Zealand dollar briefly slipped above US72c early today, its highest level in 22 months.
The kiwi then eased back and soon after 8am was buying US71.78c, little changed from the US71.77c it was buying at 5pm yesterday.
BNZ currency strategist Danica Hampton said the NZ dollar was underpinned by a generally weaker US currency.
The greenback was affected by softer than expected US consumer confidence data and concerns the Federal Reserve may need to cut US interest rates this year.
Despite the Westpac McDermott Miller consumer confidence index out today showing an easing of consumer confidence in this country, a variety of offshore funds were buying the NZ dollar.
The kiwi had reached an intra-session high of US72.04c, but spent little time there as short-term speculative players were eager to lock in profits around that level, Ms Hampton said.
The NZ dollar rate against the yen continued to be supported by talk of new uridashi demand and the launch of new Japanese investment trusts.
Overnight the kiwi had flirted with the 85 yen level, but been knocked back by profit-taking and commercial selling out of Japan.
Soon after 8am today the NZ dollar was also little changed against the currencies of major trading partners from levels at 5pm yesterday.
It was buying A88.79c from A88.62c, 0.5377 euro from 0.5382, and 84.60 yen from 84.74. The trade weighted index was at 70.09.
In contrast to softening in the US, a strong German business survey overnight reinforced expectations euro zone rates are headed higher.
The divergence in US and euro zone monetary policy has undermined overall sentiment on the US dollar, analysts said.