Pound falls against kiwi

The New Zealand dollar made gains against the pound yesterday, despite falling equity markets and investors remaining cautious about taking on added risk.

• The kiwi’s rise against sterling was due to investors taking profits on the pound’s recent gains.
  
• Markets still remain uncertain over the global economic outlook, which reflects the currency movement having no clear direction.
  
• The kiwi was little moved by comments from Reserve Bank of New Zealand Governor, Alan Bollard, who reiterated that the economy was likely to start growing again by the end of the year but the recovery would remain fragile.