Kiwi finishes down against sterling

The New Zealand dollar lost ground against Sterling yesterday after a further credit downgrade in Ireland and weaker equity markets saw a fall in demand for riskier currencies.

• Falls on Asian stock markets and a second downgrade of Ireland’s sovereign credit rating in three months reduced investor appetite for riskier currencies like the Kiwi.
  
• Investors remain cautious ahead of a number of key local releases later in the week. This starts with 1Q Terms of Trade later today and the RBNZ rate decision due on Wednesday.
  
• The RBNZ's decision may not provide very much support for the Kiwi with analysts split over whether they will cut rates this time round.