Having given up ground to the UK currency in early trading, the kiwi rallied steadily through the afternoon, to close marginally up at 2.1833.
- The pound found support yesterday after the BoE’s policy minutes revealed no direct discussion over further loosening the current monetary policy.
- In the wake of the news, sterling posted an intra-day high of 2.2074 as investors grew more confident in the outlook for the UK economy.
- However, the New Zealand dollar capped its losses as Alan Bollard, governor of the Reserve Bank of New Zealand, in a speech appeared surprisingly reserved over the recent appreciation of the kiwi dollar.
- Mr Bollard said that kiwi strength was “not necessarily an obstacle to raising the cash rate,” encouraging investment in the higher-yield currency.
- In trading this morning, the New Zealand dollar has weakened, enabling the pound to advance back towards 2.20, as Chinese data failed to do more than meet market forecasts, giving traders a reason to cash profits.
Related posts:
- Positive economic data from NZ, keeps the kiwi rallying higher vs sterling
- Positive data from NZ keeps the kiwi advancing against the pound
- Kiwi halted its climb yesterday, as demand for higher-yeilding currencies weakened
- Sterling traded strongly at the end of last week against the kiwi but has slipped back sharply this morning
- Bearish sentiment towards the pound on Friday allowed the kiwi to make substantial gains
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