The pound fell to the lowest level in a month against the dollar, after Bank of England's minutes showed officials voted unanimously to lower its main interest rate and that one key policy maker actually voted for a more aggressive 0.5 per cent cut. The sterling received little in the way of respite as US data showed consumer prices rose in January, giving a broad-based boost to the dollar. Elsewhere, the South African rand fell against all major currencies, after Finance Minister, Trevor Manuel, said the government would ease foreign exchange controls on institutional investors by allowing them to invest more abroad.

GBP

The sterling declined rapidly against the dollar after the BoE monetary policy committee minutes were released. While there was little in the minutes to suggest that the BoE are about to embark on an aggressive rate-cutting campaign, markets are still pricing in the prospect of more easing in the months ahead.

USD

The dollar strengthened against 11 of the 16 most active currencies, after data showed US inflation rose in January, casting doubts on speculation the Fed would cut interest rates aggressively at their next policy meeting.

EUR

The euro extended losses versus the dollar, slipping to session lows after a top German politician claimed the country's regional state-backed Landesbank was in crisis. The comments added to an already risk averse mood in a market worried about the health of the global financial sector.

JPY

The yen rose against 10 of the 16 most active currencies, as concern that credit-market losses will widen prompted traders to reduce holdings of higher-yielding assets funded in Japan.