Daily currency report

Sterling is holding steady while the dollar stays in tight ranges against the euro. Crude oil prices jumped after Nigerian militant attacks severely disrupted supplies from the world's eighth largest oil exporter.

GBP
The sterling held steady encouraged by news of a strong rise in British house prices. The property website Rightmove posted their strongest monthly gain in almost two years and stated that house prices have risen by 2.7 per cent in early 2006.

USD
The dollar stayed in tight ranges against the euro; with the higher yield available in the US seen as supportive for the greenback, even after mixed economic data late last week.

EUR
The single currency had found some support in early trading this week as eurozone data flow proved supportive and policymakers talked up the prospects for eurozone interest rate hike. ECB chief said that financial markets are "perfectly reasonable" to expect the Central Bank to raise interest rates in March and that market expectations for future hikes were "reasonable". Most analysts predict that rates will hit three per cent by the end of the year.

JPY
Toshiro Muto, the Bank of Japan deputy governor, has forecast a steady rise in prices. Mr Muto stated that the economy was showing signs of steady broad-based growth and consumer prices, a trend he was expecting to continue.