Kiwi suffered as risk aversion at the back end of last week, though stronger this morning

The kiwi dollar retreated to two and half month low against the pound on Friday as risk appetite took a sharp downturn as the Dubai debt issue deepened.

• The New Zealand dollar followed the broader market events and directions that unfolded at the end of last week with regards to the concerns arising over debt issues in Dubai.
  
• In response, sterling reached a high of 2.33 after a sharp pull back in risk activity saw investors trim their positions is the "riskier" currency.
  
• The kiwi is firmer this morning as investors are more confident and less risk averse after the UAE offered to help banks in Dubai, reducing fears of a debt default.