Sterling is up against the kiwi as rising risk appetite has little impact on a weaker NZ dollar

The pound crept up against the kiwi dollar in trading yesterday, though with little economic data to guide the market the pair held relatively steady.

• Rising risk appetite, spurred by better-than-expected US retail sales and robust Japanese growth figures, was unable to lift demand for the higher-yielding currency.
  
• Investors remain wary of the kiwi after the Reserve Bank of New Zealand made it clear that they plan to keep interest rates at a record low level well into 2010.
  
• In trading this morning the pound has rallied over a cent, bringing the price back over 2.25 with investors taking their lead from a weaker Australian dollar.