The New Zealand dollar weakened after Reserve Bank governor Graeme Wheeler reiterated that he still considered the currency "unjustified and unsustainable", key criteria for intervention.
The kiwi fell as low as 73.61 US cents from 74.03 cents before Wheeler's comments to Parliament's finance and expenditure select committee.
The local currency had climbed from 73.54 US cents at 9am after Wheeler omitted previous reference to its level being unjustified during the release of the bank's six-monthly Financial Stability Report. It was recently trading at 73.72 US cents.
"We still think the exchange rate is unjustified and unsustainable" even after a 5 per cent decline on a trade-weighted basis over the last three weeks and a 7 per cent to 8 per cent decline against the Aussie, Wheeler told the committee.
