Sterling dropped to a one-week low against the dollar and neared a two-week low versus the euro but recovered later as the market tempered its reaction to recent economic data. Oil prices jumped over $1 to near $67 a barrel following threats that Al-Qaida was preparing attacks on the US and supply concerns from crude oil exporters Iran and Nigeria.
GBP
The Bank of England has now held rates at 4.5 per cent since August, when it cut rates for the first time in two years to shore up a flagging economy.
USD
The dollar rose against the euro and yen after the number of Americans filing first-time claims for unemployment benefits fell last week to the lowest since April 2000. Midway through the New York trading day, threats by Osama Bin Laden to attack the US once again sparked a technically driven sell-off in the dollar that muted the dollar's recovery.
EUR
The euro continues to trade within a narrow band against the dollar. A relatively uneventful CPI at 2.2 per cent and persistently strong but nit flawless TICS report from the US retained the status quo in the single currency as the focus shifted to the Japanese currency.
JPY
Japan's economy is recovering as companies boost investment and an improvement in the labour market encourages consumers to spend.
Compiled by Commercial Foreign Exchange Travelex Malta. (Free phone: 800 77 33 22)
www.travelex.com.mt