The kiwi continues to post fresh 12-year highs against the pound today despite a drop in risk appetite

The pound gained 0.2% against the kiwi yesterday, as investors felt that they could have gone too long on high yielding currencies.

• Sterling reversed its slide against a strong kiwi dollar, building on the bullish run of European equities.
  
• Investors were also concerned that the strength of the kiwi was a result of over buying and was set for a correction, which resulted in slight profit taking.
  
• However, the pound’s downward trend has continued again in trading this morning, with the pound briefly posting a low below the psychological 2.3000 level, as concern for the stability of the UK economy resurfaces.
  
• It was revealed today that Lloyds did not have sufficient capital to spurn a government led asset protection scheme, which has sent the pound plunging, and is currently trading 0.5% down against the kiwi.