The Brexit deal was rejected by the British House of Commons this week. Photo/Getty Images.
The New Zealand dollar weakened as strong earnings in the US improved sentiment there and investors prepared for further delay in setting the terms for the UK's departure from the European Union.
The kiwi was trading at 67.81 US cents at 8.30am, from 68.11 cents late yesterday, and at 52.71
British pence from 53 pence. The trade-weighted index was at 73.37 from 73.68.
Stocks in the US continued their recent gains overnight, boosted by good banking sector results. A 1 per cent fall in December import prices was consistent with the slowing growth, low-inflation picture that makes further rate rises by the US Federal Reserve this year less likely. The S&P500 Index was recently up 0.5 per cent.
As expected, UK Prime Minister Theresa May survived the no-confidence vote against her government this morning by 325 votes to 306. Her survival was assured after the Democratic Unionists and key Brexit rebels in her own party pledged their support, but there is no certainty as to what her next option for an improved Brexit deal is.
After the heavy defeat of her Brexit plan yesterday, markets had realised that "little had changed, at least in the near term," Westpac said in a note before the no-confidence vote was completed.
