Kiwi was higher in trading yesterday and is continuing to press higher against the pound this morning

The pound fell back sharply against the kiwi dollar yesterday, losing two and a half cents from a two-month high to close back below 2.30.

• The higher yielding kiwi dollar found support as risk appetite found its way back into the market after the UAE central bank agreed to provide support for the ailing Dubai banks.
  
• The kiwi rose some 1.1% as demand for the New Zealand currency strengthened and risk appetite found its way back in to the market following the encouraging news.
  
• Meanwhile, sterling was under heavy pressure in the wake of a weaker-than-expected consumer confidence survey, which highlighted the fragile state of the domestic economy.
  
• In trading this morning, the kiwi is climbing higher, up over a cent so far today, as news that Japan may expand quantitative easing as led investors to sell the Japanese yen in favour of the riskier New Zealand dollar.