Kiwi down against sterling as risk appetite eases

The New Zealand dollar dropped against sterling yesterday as falling equities markets hit demand for higher-yielding currencies.

• The Kiwi was also hurt by manufacturing data which suggested that the local economy in the first-quarter is likely to have again contracted sharply.
  
• However, the Kiwi’s losses were contained by last week’s central bank decision to keep interest rates on hold.
  
• The Kiwi's direction in the next few days is likely to be guided by broader market movements.