The Kiwi strengthened against sterling over the week. It was no major achievement: Every currency strengthened against sterling, which was dragged lower by the expectation of higher UK interest rates fading ever further into the future.

The pound fell by an average of -1.1% against the other dozen most actively-traded currencies. It lost even more than that to the NZ dollar, dropping -1.6%. 

There were few New Zealand economic data to drive the currency. Business confidence improved in December, as did consumer confidence, but both remained below levels seen in the first half of the year. The Kiwi's success was mainly the result of disappointing data from Britain and North America. It took three quarters of a cent off the US dollar and three and a half cents off sterling. The NZ dollar is unlikely to be quite so successful in the quiet holiday week ahead.