The pound lost ground against the kiwi yesterday, as investors were encouraged by positive data from the NZ economy

The New Zealand currency rallied yesterday with positive services data from the UK unable to support the pound, closing down at 2.4070.

• With investors awaiting New Zealand’s interest rate decision and the RBNZ’s accompanying statement next week, investors continued to take direction from the equity markets.
  
• A strong showing in Asian equities and a decline in the major European indices stoked demand for the kiwi pushing the rate down near the 2.40 mark, and making strong inroads into the losses it incurred earlier in the week.
  
• The kiwi also benefitted from stronger export prices on commodities this month, rising to 4.3% from 1.0% in July.
  
• Japan released a positive figure on their capital spending, which encouraged investors to move away from their haven in the yen and has driven the kiwi over a cent and a half (0.7%) higher against the pound so far today.