Kiwi falls after dairy price slide

Sterling strengthened against the kiwi dollar yesterday, after better-than-expected UK manufacturing data and a strong performance on London equity markets.

• Stronger-than-forecast UK manufacturing PMI data buoyed demand for the UK currency mid-morning yesterday. The index rose to 47.0 in June, the highest it has been since May 2008.
  
• The downward pressure on the kiwi was also increased after Auckland-based Fonterra Cooperative Group Ltd., the world’s largest dairy exporter, reported whole-milk powder prices had slid to a five-year low.
  
• Finally, strong London equities drove sterling’s gains yesterday, with the FTSE 100 eventually finishing up 91.50 (2.15%).