Pound trades mixed against New Zealand dollar

The pound lost ground to the New Zealand dollar yesterday morning, before recovering all its loses in the afternoon to close 0.33% up on the day at 2.5656.

• Sterling fell against most currencies, including the kiwi dollar, yesterday morning after weak British industrial production data fanned further doubts about a quick recovery for the UK economy.
  
• The figures showed British manufacturing output fell by 0.5 percent in May and industrial production shrank by 0.6 percent, against forecasts for a 0.2 percent rise in both measures.
  
• Sterling dipped to a 1-week low against the New Zealand dollar following the release, but recovered all its losses in the afternoon as investors began to shy away from higher yielding currencies.
  
• The pound held its gains overnight, as a gloomy outlook for the world economy was backed up by dismal private-sector orders for Japanese machinery, a key leading barometer of the state of Asian demand and the region's manufacturing sector. Orders unexpectedly fell to a record low in May, undermining demand for higher yielding currencies such as the New Zealand dollar.