Concern over the strength of the global recovery dulled demand for the kiwi yesterday

Sterling was up nearly two cents, or 0.9% against the kiwi, as risky-assets took a broad downturn with the pair closing up at 2.2613.

• A drop in European equities was mirrored by the major indices in the US and Asia, which also closed in the red, discouraging demand for higher-yielding kiwi.
  
• The New Zealand dollar also lost ground to the pound after Chinese Premier Wen Jiabao said the world economy faces a bumpy recovery, discouraging risk demand.
  
• "The world faces a gradual and uneven recovery from the worst financial crisis since the Great Depression," China's Wen said in a televised speech in Beijing.
  
• The kiwi is continuing to lose ground in trading this morning as investors turn to profit taking ahead of the weekend and as policymakers warn that economic recovery is still fragile.