Kiwi strengthens after markets rally

Sterling weakened against the New Zealand dollar yesterday, losing almost 2 cents to finish the day at 2.5653.

• The pound made small gains against the New Zealand dollar early yesterday, but fell sharply in the afternoon as Wall Street staged a morning rally amid hopes that US corporate earnings may not be as weak as expected.
  
• The rise in US equities increased demand for riskier currencies, offering the New Zealand dollar some support.
  
• However, the kiwi has weakened a little this morning as investors brace for earnings reports from the US, including an important one from Goldman Sachs.