The S&P/NZX 50 index closed lower for the third consecutive session, falling 0.12% to 13,635.07 in subdued trading.
The decline marked a notable divergence from the broader Asia-Pacific region, where major indices rallied following softer-than-expected US inflation data that sparked hopes for earlier rate cuts from the Federal Reserve.
While regional peers benefited from the dovish shift in US macro expectations, New Zealand equities remained under pressure.
The local market's weakness appears linked to broader currency headwinds rather than domestic corporate fundamentals.
Trading volumes were light, suggesting a lack of conviction among buyers despite the positive external catalyst.
The sell-off in New Zealand assets has been compounded by a sustained rally in the US dollar.