NZ dollar eases slightly after big rise last week

The New Zealand dollar drifted slightly lower today after pushing up to its highest level in more than a week against major currencies during the weekend on hopes for a firmer global economic recovery.

The NZ dollar was at US70.88c at 5pm, down slightly from US71.08c at 8am and US71.00c at 5pm on Friday.

Rankin Treasury said risk currencies were back in favour with investors and the NZ dollar rose US2c last week. But there could be some slippage this week.

The Australian dollar had a stellar week last week and it was expected to give up some ground this week.

Westpac said sentiment for the NZ dollar was mildly positive. It expects the NZ dollar to firm to US71.60c but then drift back below the US71c figure. Retail sales data on Wednesday and inflation data on Friday are the main events in the local news diary.

"Against that, the week-old NZ dollar rally is waning in strength and vulnerable to a pullback," Westpac said.

By 5pm today, the NZ dollar was at 0.5623 euro from 0.5597 at 5pm on Friday, and was A81.05c from A81.01c.

It rose 63.10 yen from 62.91 yen at Friday's local close after Japan's ruling coalition lost its upper house majority during the weekend, creating political uncertainty for investors in yen.

The trade weighted index was at 67.47 from 67.36 at 5pm on Friday.

- NZPA