The pound edged lower against the kiwi dollar yesterday as investors continued to shift their funds into high-yielding currencies, with the pair closing at 2.1542.
- Commodity and equity markets rallied higher yesterday, including a rise of nearly a percent in the Nikkei 225 and the Shanghai Composite, which maintained strong demand for the kiwi.
- Selling pressure on the pound also remained high following a report that cast doubts over the pace of the UK economic recovery, stating that interest rate rises would lag those of other major economies.
- In trading this morning, the pound has shed a further two cents against the kiwi following a surprise jump in New Zealand retail sales for August.
- Sales rose 1.1% from the previous month, beating expectations of a rise of 0.6% and fuelling talk that the central bank might soon drop its economic easing measures.