Once again sterling edged downward against the kiwi yesterday, though it picked itself up significantly from an intra-day low below 2.13, to close at 2.1534.
- The pound dropped in early trading after a business group said the Bank of England should expand its asset-purchase programme and the inflation rate slowed more than forecast.
- UK annual consumer price inflation slumped to its weakest rate in seven years in September, underlining the likelihood that the Bank of England will need to maintain loose policy for an extended period.
- However, investors took the opportunity to cash in profits in the afternoon, buying back into the pound, enabling the sterling price to rally.
- In trading this morning, the kiwi has resumed its climb, with figures pointing to a continued recovery in the NZ housing market, which bolstered expectations of rate rises early next year.