Daily Currency Report

Sterling was on the back foot against a basket of currencies, hitting a one-week low against the US dollar. The dollar gained across the board, posting particular improvements against both the euro and the Japanese yen. In the eurozone sentiment surveys were published showing an overall improvement and optimistic outlook, while German industrial orders and retail sales for both Germany and the eurozone as a whole disappointed.

Sterling

Sterling fell against the dollar and was also slightly down against the single currency after political concerns lingered despite British Prime Minister, Gordon Brown, surviving an attempt to oust him. The pound gained little respite as the Bank of England kept policy steady as expected.

US dollar

The US dollar rose against the euro and Japanese yen, propelled by weak German and eurozone data as well as by comments from Japan's new Finance Minister, Naoto Kan, that he wanted the yen to weaken more. The greenback's gains pushed the currency to four-month highs versus the yen. The dollar was also on track for its best one-day gain against the euro in nearly three weeks.

Euro

The euro found itself slightly up against the pound however down against the US dollar. On balance sentiment figures released, all showed signs of improvement. Nevertheless, equity markets in Europe remained under pressure allowing the US dollar the opportunity to make further ground.

Japanese yen

Japan's finance minister announced his arrival by calling for a weaker yen. He said that he would work with the Bank of Japan to achieve an appropriate level for the Japanese currency. Mr Kan's comments prompted the yen to fall to a four-month low against the dollar.

Commercial Foreign Exchange Travelex Malta, (Free phone: 800 733 22) www.travelex.com/mt/