Together with the other commodity-related currencies the NZ dollar took fright last Friday when the US Federal Reserve chairperson and her deputy spoke at the Fed's annual symposium. Vice chairman Stanley Fischer trumped his boss's equivocal comments when he said two interest rate increase were possible this year. As this week wore on the impact of those remarks faded and the Kiwi made a better recovery than its peers, eventually losing a net third of a US cent.

The NZ dollar was less fortunate against sterling, which was the week's top performer and led the major currency field for three days on the trot. A series of better-than-expected UK data have assuaged fears that the vote to leave the EU would be immediately disastrous to the economy. As speculators closed out more of their short positions the pound advanced by one and three quarter NZ cents.