The RBNZ have stated that monetary policy will begin to tighten, boosting demand for the kiwi

Sterling lost over four cents, or 1.8% to the kiwi dollar in trading yesterday as the Reserve Bank of New Zealand hinted at future rate rises in their policy meeting.

• Sterling was under pressure throughout European trading after the UK's pre-Budget Report did little to ease lingering concerns over Britain's debt problems.
  
• The Chancellor, Alistair Darling, outlined various spending cuts and taxes, as well as lowering this year's growth forecasts, but little encouragement was given that the government would be able to curb the spiralling deficit.
  
• In the evening, the kiwi received a renewed boost after New Zealand's Central Bank opened the door to rate rises from as early as next April.
  
• The RBNZ said that it may start withdrawing monetary stimulus by the middle of 2010, amid an improving local and global economic outlook.
  
• This morning, the market is continuing to move the kiwi higher, with the sterling/NZD pair now trading at a one month low, currently hovering just below 2.24.