ASB Bank external foreign exchange sales head Tim Kelleher said currency traders were sceptical that strong equities markets worldwide would be able to hold on to their gains.
"The equities markets are probably a little bit ahead of themselves. The currency markets are probably slightly more reserved and there is an expectation that at some stage we'll see a pullback in those equity markets," Mr Kelleher said.
"They've gone too far, too fast."
Just after 5pm, the New Zealand dollar was buying 82.92 US cents, 88.63 Australian cents, 51.60 pence, 0.6161 euro and 83.11 yen.
Wall Street highs
Wall Street reached record highs on Thursday after United States President Barack Obama's nominee to head the Federal Reserve, Janet Yellen, robustly defended the central bank's bold steps to spur economic growth.
The Australian market was strong as well, with the ASX 200 Index up 40 points at 5395 just after 5pm New Zealand time. But the New Zealand didn't join the party, the NZX Top 50 Index easing 13 points to 4914.
First NZ Capital broker Don Lewthwaite said the New Zealand market tended to be more cautious.
"Our market's inherently conservative. We don't tend to flip and flop as much as the US or Australian market - it's a bit more of an even keel here," Mr Lewthwaite said.
Ryman shares performed well, rising 10 cents to $7.90. However, Hallenstein Glasson's trading update, in which it reported it expected a 20% drop in first half profit to about $8 million, led to its shares falling 50 cents to $4.50.
"It's not on great volume though - it's not an especially liquid stock - so it doesn't take too much to push it down," Mr Lewthwaite said.
Car seller Turners Auctions issued a profit upgrade, leading its shares to gain 15 cents to $2.42. The company said it expected a 10% lift in its after-tax profit this year, thanks to an improvement in trading in the second half.
