Sterling falls sharply against kiwi dollar

The pound fell sharply against the New Zealand dollar yesterday, losing 1.38% to finish the day at 2.5572.

• Sterling fell sharply against the kiwi dollar in the early morning yesterday, as investors continued to sell off the British currency on growing risk aversion.
  
• The pound levelled off in the afternoon, before resuming its fall overnight amid speculation that the Bank of England plans further quantitative easing.
  
• The kiwi dollar also got a boost this morning from better than expected business confidence figures for the second quarter, suggesting the economy may pull itself out of recession by the end of the year.