Kiwi up over 2 cents vs. sterling

The pound lost more than 2 cents to the New Zealand dollar yesterday to finish the day at 2.5315.

• The New Zealand dollar made strong gains against the pound yesterday morning, as sterling was undermined by data showing UK unemployment hit its highest level since January 1997, raising doubts about the possibility of a recovery in the British economy.
  
• The New Zealand dollar extended its gains against sterling yesterday afternoon, as very strong corporate earnings figures from Intel and Goldman Sachs boosted demand for riskier assets such as the kiwi.
  
• However, the pound recovered all its losses overnight, as the kiwi came under broad selling pressure after ratings agency Fitch revised its outlook on New Zealand’s AA-plus credit rating to negative.