Kiwi continues strong run agains the pound

The pound fell a further 0.5% against the kiwi yesterday in the wake of firmer stock markets to close at 2.3682.

• Gains made in the US stock indices were mirrored in the Nikkei 225 yesterday allowing the kiwi to continue its strong run against the pound.
  
• Demand for the New Zealand currency was further supported overnight as much improved data emerged about building approvals, which added strength to the country’s economic recovery.
  
• There was also support from the US where a better-than-forecast GDP figure improved investor sentiment about a global recovery and aided demand for higher-yield currencies.
  
• This morning however, the pound has already recovered half a cent against the kiwi as investors remain cautious over holding the currency over the weekend and decide to lock in their profits.