The New Zealand dollar eased back from a new overnight high but remained above US78c.
During the night the kiwi peaked at US78.80c, a new 22-year high since being floated, but fell away to US78.21c at 5pm today, near yesterday's US78.16c close.
"We're pretty much back to familiartrading ranges," ANZ Investment Bank chief dealer Murray Hindley.
Yield advantage kept the kiwi dollar strong against other major trading partners. It trumped the Australian dollar at A91.29, compared to A91.16c at yesterday's close, and flexed its muscles against the yen at 96.33 yen (95.97 yen).
The trade weighted index hit another record high, peaking at 75.63 (75.49).
The ANZ bank said the kiwi's swift retreat came as the US dollar gained on the strength of overnight data.
The greenback gained against the euro and the yen after an unexpected gain in US services sector activity eased concerns that the Federal Reserve may have to cut US interest rates later this year to shore up a slowing economy.
Overnight the European Central Bank decided kept rates on hold at 4 percent but suggested more hikes were likely.
But the US dollar lost strength against the pound after a rate rise by the Bank of England to 5.75 percent with inflation risks to the upside. The greenback hit a 26-year low against the pound on Wednesday.
Mr Hindley said the New Zealand currency would now take the lead from US non-payroll figures out tonight.
Local data out next week included a quarterly survey of business opinion on Tuesday and retail sales on Friday.
