Kiwi gained further yesterday but has relinquished some of its gains in trading this morning

The kiwi gained another 1.2% in trading yesterday, closing at 2.3101, buoyed by consumer confidence and strong Asian stocks.

• The kiwi extended to a twelve and half year high against the pound yesterday, as risk was supported by a higher-than-expected industrial production figure in the US.
  
• One analyst said that in an environment of growing economic confidence, there was little on the horizon to shake the kiwi’s strength.
  
• However in trading this morning, sterling has reversed its downward spiral, currently trading around 0.2% higher.
  
• Data from New Zealand late last night revealed a decline in their Business NZ Manufacturing Index which has dampened demand for the currency, enabling the pound to make a slight recovery.