NZ dollar eases back after early rise

The New Zealand dollar drifted lower in its domestic session after rising on Tuesday night as equity markets strengthened and investors became more comfortable with risk.

By 5pm the NZ dollar was at US69.49c, down from US69.90c at 8am but still ahead of the US69.30c at 5pm yesterday.

"We had a big run up overnight following the S&P 500 then it stalled and has really drifted since then," said Imre Speizer, senior currency strategist at Westpac.

Overall, the market had a slightly positive flavour to it, he said.

US stocks jumped on Tuesday US time after successful debt auctions in Spain, Belgium and Ireland reduced worries about debt in Europe.

ANZ said that with global equities continuing to clamber higher, the NZ dollar was well positioned for another test of the topside after a much needed breather yesterday.

It should continue to benefit from renewed confidence in the global recovery, ANZ said.

The NZ dollar was at 63.56 yen at 5pm from 63.41 yen at the same time yesterday. It was at 0.5638 euro at 5pm from 0.5678 euro yesterday, and was at A80.43c against the Australian dollar from A80.92c yesterday.

The trade weighted index eased slightly to 67.10 at 5pm from 67.19 yesterday.

- NZPA