The New Zealand dollar has had a strong run against the pound in recent months, gaining 13 per cent against that currency since September.
However, the kiwi is still trading well below the 51.8p high it reached against the pound in January.
The New Zealand dollar was little changed against the greenback this morning, at US68.42c.
The Bank of England, which has kept interest rates at 0.5 per cent since early 2009, was earlier this year expected to follow the Federal Reserve in hiking interest rates however most economists now don't expect a hike until May 2016 and market pricing suggests rates could be on hold for another year.
"It's a continuation of the trend throughout December of a weakening pound and a strengthening kiwi. The pound has had a terrible time through the whole of December, investors have been dumping pounds in their droves," said Kevin Morgan, OMF senior dealer, foreign exchange and derivatives.
"As the market now feels more secure that the RBNZ are probably done with cuts for the time being, the kiwi has come back into favour and one of the notable features has been against the pound which has weakened considerably as UK data has deteriorated and the market is trying to second guess if and when the UK central bank will ever raise rates."
The New Zealand dollar rose to A94.35c from A94.06c yesterday, and gained to 4.4385 yuan from 4.4314 yuan. It was little changed at 82.34 yen from 82.35 yen yesterday and at 62.36 euro cents from 62.32 cents.
Trading volume was lighter than usual.
Last week, local financial markets closed on Thursday, and were closed Friday. This week markets will be closed for the New Year's Day holiday on Friday.
- BusinessDesk/NZH staff reporter
