The kiwi dollar climbed another 1.2% on Friday, as demand for the high yield currency remained strong in the wake of positive economic data.
- Investors continued to move their funds into the riskier currency on Friday as data in the US revealed a strengthening economic recovery.
- Selling pressure on the pound was also high on Friday as comments from the BoE revealed their willingness to see the currency remain weak, undermining investor confidence.
- The kiwi also received support from a slight rise in oil prices. The New Zealand dollar tends to fair well when commodity prices are on the up owing to the nature of the economy.
- The kiwi has retreated in trading this morning though as investors turned away from riskier assets following hefty losses in the stock markets.
- Stocks turned sharply lower on fears over the strength of the economic recovery and concerns that markets had reached their peaks, which has enabled the pound to recover around 0.1% so far today.