The Kiwi and the pound performed quite well during most of the week. They both came to grief on Thursday, but not for the same reason. It was the NZ dollar that was first to fall by the wayside when the Reserve Bank of New Zealand announced that its Official Cash Rate would remain unchanged at 1.75%. The decision itself was no surprise but investors had expected the RBNZ to hint at higher rates in the future because of the rising rate of inflation. When it made no such comment the Kiwi took a two-cent hit.

Sterling's problems were UK manufacturing and industrial production, which declined again in March, and the Monetary Policy Committee minutes, which showed only one member voting to increase Bank Rate. On the week the NZ dollar and the pound were just about unchanged against one another. The Kiwi lost a fifth of a cent to the US dollar.