Daily Currency Report
Overview
The dollar tumbled to a three-month low against the yen, as G7 finance ministers called for major exporting nations to let their currencies rise against the dollar. Oil prices fell nearly 2.5 per cent after Opec promised to keep pumping near maximum capacity, but losses were limited as the cartel conceded that it could not cool the red-hot market.
GBP
The upbeat sales figures dampened expectations that BoE could cut rates from 4.5 per cent in the coming month, a move which would be negative for the sterling at a time when other major central banks are tightening policy.
USD
The dollar slid lower still against the euro and the yen after the reports from the G7 meeting stating that China should let the yuan appreciate as a way of fixing global imbalances.
EUR
The euro received an added boost as another central bank said it was shifting reserves away from the dollar.
JPY
The yen climbed significantly against the dollar after the G7 nations urged Asian countries including China to allow their currencies to strengthen. However, the yen's gains may be limited since excessive moves in currencies are undesirable.